'Tax Lady' expands her franchise empire

The Tax Lady's franchise empire is expanding despite the economic downturn.

Sacramento-area tax attorney Roni Deutch has launched more than 170 Roni Deutch Tax Center franchises across the country, mushrooming beyond the 17 centers she debuted in a nationwide opening in January.

"The economic downturn is helping my business. There are more layoffs and downsizing. All these people have a 401(k) and a forced desire to do something else," Deutch said. "They're saying, 'I've got to find the next thing. I've got to hedge for my future.'"

Long known as the "Tax Lady" through her tax resolution legal practice and her many television appearances, Deutch stepped last year into a U.S. accounting and tax preparation market worth upward of $65 billion.

Although many of her franchisees are in Northern California and Oregon, others have bought territories in Las Vegas, Atlanta and Pennsylvania, Deutch said.

Deutch has plans to sell 250 franchises by 2009, reaching 1,000 tax centers by 2012.

With an average price of $65,000 for a franchise, hopeful 'zees' – as Deutch calls them – are seizing their opportunity.

They include Michael Hunt, who in January opened a Roni Deutch Tax Center on Sacramento's Stockton Boulevard in a territory that encompasses much of south Sacramento.

After a career in construction, Hunt tried for a couple of years to go into business for himself before learning about Deutch late last year.

The entry price was right – less than $30,000, in his case – and he was able to win financing. Tax center training in November led to a storefront in January and, best of all, he said, he was able to run his small electrical contractor's operation out of the same office.

That's by design, Deutch said, explaining that franchisees get to retain and get added exposure for their businesses while Deutch gets the benefit of an established client base.

"It sweetens the pot for everyone. It's beneficial to have a one-stop shop, and (franchisees) can cross-train their employees," Deutch said. "We're trying to differentiate ourselves and improve the chances of our 'zees' success. 'Zees drive this machine."

Hunt knows it's going to be a long road to success, saying on some days he feels like "a chicken in an alligator farm." But he's optimistic that he'll overcome his initial growing pangs.

"Everybody's in this together. Talk to each one of us, and there are going to be hard times, but you're not a lone soldier out there," Hunt said.

Technical support staff at Deutch's North Highlands offices help to solve glitches and offer Web seminars to help the self-starters walk through preparation and other issues.

Hunt and other franchisees sign a 10-year franchising agreement. It's a long-term investment that also allows franchisees to grow into their business and develop a client base.

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• Call The Bee's Darrell Smith, (916) 321-1040.