Toro Taxes

Every year, more than 150 million American households file federal income tax returns, yet tens of millions of Latino taxpayers lack access to culturally competent, bilingual professional tax services — a gap that represents one of the most compelling underserved market opportunities in the entire financial services franchise sector. Toro Taxes was built to close that gap. Founded in Las Vegas, Nevada, by Nick Maldonado, Oscar Toro, and Javier Solis, the company traces its roots to late 2009 and 2013, with Toro Tax Franchising LLC officially incorporated on October 23, 2014, and franchise sales commencing in 2015. The company's principal business address is 1800 East Sahara Avenue, Suite 106, Las Vegas, Nevada 89104, and it operates under the leadership of CEO and co-founder Nick Maldonado, who is widely credited as the visionary architect of the brand's growth strategy. A pivotal moment in the Toro Taxes franchise story came in early 2019, when the company merged with Los Taxes — the first Latino tax franchise in the United States — instantly expanding its footprint to approximately 140 locations across 17 states and cementing its position as the largest Latino franchise in any industry. Today, the Toro Taxes franchise network has grown to more than 250 locations across 30 states, with the West region historically representing the brand's densest concentration of offices. The Latino community accounts for approximately 18.1% of the total U.S. population, a demographic projected to represent more than 30% of the U.S. workforce by 2050 and one that already spends over $1.7 trillion annually in goods and services — yet remains chronically underserved by mainstream financial and tax preparation brands. For franchise investors evaluating the Toro Taxes franchise opportunity, this is not a marketing narrative. It is a demographic and economic reality that gives this brand a structurally defensible market position in one of America's most durable service industries.

The U.S. tax preparation industry generates between $3.3 billion and $195 billion in annual revenue depending on how broadly adjacent financial services are included in the estimate, and the core professional tax preparation segment has demonstrated consistent annual growth of approximately 6% — a rate that holds even during economic contractions, which is why the category is routinely described as recession-proof. Unlike discretionary consumer spending, income tax filing is a legal obligation for the vast majority of American households, and the ongoing complexity of the U.S. tax code — with its continuous regulatory modifications — consistently drives demand toward professional preparers rather than self-filing. Within this industry, the Latino market segment represents a uniquely underserved and high-growth niche. The U.S. Latino population is the fastest-growing demographic in the country, and there is an estimated market of over 12 million undocumented Hispanic individuals who will seek Individual Taxpayer Identification Numbers and file income tax returns, representing an entirely separate and largely untapped segment beyond the documented Latino workforce. Beyond personal returns, the small business formation rate within the Latino community is rising rapidly, creating demand for bookkeeping, payroll, entity creation, and IRS representation services that extend well beyond the traditional April 15 tax season. The competitive landscape for Latino-focused tax services remains remarkably fragmented — national tax chains have made limited inroads into culturally specific service delivery, and independent preparers lack the brand infrastructure, training systems, and technology platforms that franchise buyers need to scale. This fragmentation is precisely the environment where a well-capitalized, operationally mature franchise system like the Toro Taxes franchise can gain durable market share by offering bilingual service, culturally resonant marketing, and year-round financial service diversification that generic tax chains cannot replicate.

The Toro Taxes franchise investment is structured to be accessible relative to most financial services franchise categories, with a total initial investment range spanning from approximately $17,835 on the low end to $79,150 on the high end depending on format, geography, and whether the franchisee is converting an existing practice. The standard initial franchise fee is $25,000, which includes both individual and business tax services, though the fee range across the system extends from $5,000 to $35,000. For context, the average initial franchise fee across all franchise categories in the United States typically falls between $20,000 and $50,000, placing the Toro Taxes franchise fee squarely in the accessible mid-market range. Existing tax professionals receive particularly compelling entry incentives: those with 150 to 250 existing clients qualify for a 50% franchise fee waiver and a $5,000 rebranding credit applied toward future royalties, while professionals bringing 251 or more existing clients receive a full 100% franchise fee waiver and a $10,000 rebranding credit — a structure that dramatically reduces barrier to entry for experienced operators who want the infrastructure of a franchise system without the full upfront cost. Military veterans receive a 25% discount off the standard franchise fee, aligning the brand with the broader franchise industry's commitment to veteran entrepreneurship. The ongoing royalty rate is 10% of gross sales, with a separate marketing and advertising fund contribution of 7%, creating a combined ongoing fee obligation of 17% of gross revenue for most franchisees. Minimum royalty obligations are structured progressively: $3,000 for the first tax season, $6,000 for the second, and $9,000 for the third season and every season thereafter, which allows newer franchisees time to build their client base before hitting full royalty thresholds. Financing options are available with a down payment as low as $9,000, and the liquid capital requirement for working capital ranges from $3,000 to $9,000 depending on the franchisee's specific market and operating format — one of the lowest working capital thresholds in the financial services franchise sector. For entrepreneurs seeking a low-capital-entry franchise opportunity in a recession-resistant industry with a structurally growing customer base, the Toro Taxes franchise investment profile is among the more accessible in its category.

The Toro Taxes franchise operating model is built around a bilingual, full-service tax and financial services office that generates revenue across multiple product lines, reducing the seasonal revenue concentration risk that has historically challenged single-service tax franchises. Daily operations center on professional tax preparation during the January through April peak season, but franchisees are supported with a diversified service menu that includes bookkeeping, IRS representation, retirement planning, life insurance, entity creation, payroll services, non-profit certification, audit representation, mortgage loans through the Toro Home Loans division, real estate services through Toro Realty, and training through Latinex Academy — a portfolio designed to convert seasonal client relationships into year-round recurring revenue streams. A particularly attractive format option is the mobile tax office, available at an entry cost of just $1,000, which allows new entrepreneurs to build a client base and generate cash flow before committing to the full brick-and-mortar franchise investment. Each franchisee is granted a protected territory defined as either a 20,000-population radius or a 2-mile drivable distance, secured upon payment of the one-time franchise fee with no ongoing territorial maintenance fees. Training is comprehensive and does not require any prior experience in tax preparation or accounting, which significantly broadens the eligible franchisee pool. Toro Taxes provides 40 to 50 hours of classroom and hands-on instruction — well above the IRS minimum requirement of 24 hours — delivered through both online and live preparer formats, with unlimited ongoing access to Toro University, the brand's proprietary e-learning platform. Franchisees also benefit from a dedicated customer service call center, pre-approved marketing materials, a company web portal, proprietary tax preparation software, automated CRM tools, AI-integrated accounting assistance, and centralized technology infrastructure including individual websites and service scripts. The sister company LatinX Training Centers offers similar training platforms to the public, creating an additional community touchpoint that reinforces brand awareness. Ongoing support includes field consultant access, marketing program participation, and a collaborative network of over 250 franchise operators who collectively share best practices across 30 states.

Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document in the standard format typically reviewed through the PeerSense database; however, Toro Taxes does provide certain financial performance representations in its FDD that prospective franchisees should evaluate carefully and in full with a qualified franchise attorney. The figures that are available from the FDD and public sources paint a constructive but incomplete picture of unit-level economics. The average annual revenue per office during the tax season only is reported at $68,000, and the average number of returns processed per office is 240. The top-performing single unit in the system generated more than $690,000 in annual revenue, which represents a spread of more than 10x between the average and the top performer — a range that reflects the system's mix of mature, high-volume offices and newer or smaller-format locations. The critical analytical note for investors is that revenue alone does not indicate profitability; with a 10% royalty rate, 7% advertising fund contribution, plus labor, rent, software, and other operating expenses, net owner earnings depend heavily on client volume, market density, and the degree to which franchisees successfully cross-sell the diversified service portfolio beyond basic tax returns. At 240 returns per season at an average return preparation fee, and with the royalty and ad fund obligations layered against the accessible investment range of $17,835 to $79,150, franchisees who grow their client base through the multicultural community engagement model the brand is built around and who leverage the full suite of year-round services — bookkeeping, payroll, IRS representation, life insurance — have a structural pathway toward sustainable profitability that seasonal-only operators may not achieve. The brand's corporate revenue is reported between $1 million and $5 million USD, and with over 250 franchised locations across 30 states, the royalty stream math implies meaningful unit-level revenue activity across the network.

The Toro Taxes franchise growth trajectory since its 2015 launch is one of the more dramatic expansion stories in the financial services franchise sector. Beginning from a standing start in 2015, the network grew to 144 franchised locations across 20 states by the time the 2020 FDD was filed, then continued expanding to more than 180 offices in 23 states, crossed 200 offices as of March 2025, and has since grown to over 250 franchises across 30 states — representing net unit growth of more than 100 locations in five years and demonstrating consistent year-over-year momentum. The brand's appearance on the INC 5000 list of fastest-growing companies and its ranking of number 396 on Entrepreneur's 2022 Franchise 500 list provide third-party validation of this growth trajectory. The 2019 merger with Los Taxes was a transformational event that instantly added territorial scale and validated the brand's acquisition-as-growth-strategy capability. The company has publicly committed growth infrastructure including over 25 new franchisee agreements for locations scheduled to open, with active expansion targets identified in Atlanta, Roswell, and Sandy Springs in Georgia, and Chicago, Elgin, Naperville, and St. Louis in Illinois. The leadership team driving this expansion includes Carlos Maldonado as President of Franchise Development, who has led national and international expansion efforts since September 2021, supported by CFO Emma Melendez, COO for the East Coast Javier Solis, and Director of Marketing Mónica Mariona. The brand's competitive moat is reinforced by its bilingual service delivery, its proprietary Toro University training platform, its AI-integrated technology stack including automated CRM and paperless tax preparation systems, and its culturally specific community presence — advantages that generic national tax chains operating primarily in English-language markets cannot easily replicate. The projected growth of the Latino demographic to over 30% of the U.S. workforce by 2050 creates a decades-long secular tailwind that underpins the brand's long-term expansion thesis. International expansion has also been identified as a future growth vector, potentially extending the Toro Taxes franchise model into Latin American markets where the brand's cultural identity carries natural credibility.

The ideal Toro Taxes franchise candidate does not need prior experience in tax preparation, accounting, or financial services — the brand's 40-to-50-hour training curriculum, unlimited Toro University access, and ongoing support infrastructure are designed to take a motivated operator from zero industry knowledge to operational readiness. However, candidates with an existing tax client base of 150 or more clients can unlock substantial entry incentives including franchise fee waivers and rebranding credits, making the franchise particularly attractive to independent tax professionals who want to operate under a recognized brand with national marketing, proprietary technology, and a diversified service platform behind them. Community connectivity within the Latino market is a measurable advantage — franchisees who are embedded in their local Hispanic business and residential communities are best positioned to leverage the brand's culturally competent service model. The brand's active expansion targets in Georgia and Illinois point to specific metropolitan markets where population growth and Latino demographic concentration are creating high-demand conditions. The protected territory structure — 20,000 population or 2-mile drivable distance — is secured with the initial franchise fee payment, giving new franchisees geographic certainty from day one. The mobile tax office format at a $1,000 entry point provides an additional pathway for candidates who want to test market viability before committing to a full office lease. With financing available at down payments as low as $9,000 and working capital requirements of $3,000 to $9,000, the barrier to entry is structured to be achievable for first-time franchise investors, not just experienced multi-unit operators. The system's current size of 201 to 500 employees across corporate and franchised operations indicates an organization large enough to deliver institutional support while remaining nimble enough for meaningful franchisee influence on brand development.

For franchise investors conducting rigorous due diligence on the tax services sector, the Toro Taxes franchise opportunity presents a structurally compelling case: a recession-resistant industry growing at 6% annually, the fastest-growing U.S. demographic as the core customer, a demonstrated unit count trajectory from 0 to 250-plus locations in under a decade, a low-to-mid-range investment profile with accessible financing, and a diversified service model that creates year-round revenue potential beyond the traditional April tax season. The brand's third-party recognition — INC 5000 and Entrepreneur Franchise 500 ranked 396 in 2022 — combined with its 2019 merger with Los Taxes and active multi-state expansion strategy signal an organization in active growth mode with institutional ambition. The 10% royalty rate and 7% advertising fund contribution are among the higher combined fee structures in the tax preparation franchise category, and prospective franchisees should model their pro forma unit economics carefully against the $68,000 average revenue figure and the 240 average annual returns per office to determine the client volume required to achieve breakeven and target profitability at their specific investment level. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow investors to benchmark the Toro Taxes franchise against competing tax preparation and financial services franchise concepts across every measurable performance dimension. Explore the complete Toro Taxes franchise profile on PeerSense to access the full suite of independent franchise intelligence data.