Jackson Hewitt Tax Service Franchise Cost, Revenue & Review 2026
- Investment
- $96K – $128K
- Disclosed sales
- $115K
- gross sales, not profit
- SBA charge-off
- 4.9%
- on 164 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Jackson Hewitt is a tax-preparation franchise serving mostly middle- and lower-income filers during the January-to-April season. Franchisees run local and retail-based offices preparing returns, e-filing, and promoting refund-advance products.
FranchiseVerdict summary · 2026
A Jackson Hewitt Tax Service franchise requires a total initial investment of $96K – $128K, including a $25K franchise fee and an ongoing 3.0% royalty[2]. Per the 2023 FDD, average unit revenue was $115K[2]. SBA 7(a) loans show a 4.9% charge-off rate across 164 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $96K – $128K
- 68th pct Financial Ser…
- Avg gross sales
- $115K
- 5th pct Financial Ser…
- Royalty
- 3.0%
- 5th pct Financial Ser…
- Units
- 5,287
- 80th pct Financial Ser…
- SBA charge-off
- 4.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $96K – $128K including a $25K franchise fee, 3.0% ongoing royalty.
- RETURNSAverage unit revenue of $115K/year (median $86K).
- RISKVerdict B (Above average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 4.9% across 164 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -321 franchised outlets in the latest year (73 opened, 394 closed); 42 signed but not yet open (Item 20).
- LEGAL13 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Jackson Hewitt, Inc.
- Parent company
- Jackson Hewitt Tax Service Inc.
- FDD Item 1, page 8 of the 2023 FDD
- Ultimate parent
- Assist Holdings L.P. (majority owner Corsair Assist, L.P.)
- FDD Item 1, page 8 of the 2023 FDD
- CEO title
- President and Chief Executive Officer
- Greg Macfarlane
- Incorporated in
- VA
- HQ
- 10 Exchange Place, 27th Floor, Jersey City, New Jersey 07302
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $272.2M
- vs $273.9M prior year
Overview
About
- CEO
- Greg Macfarlane
- Headquarters
- NJ
- Founded
- 1985
- FDD year
- 2023
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 19% above the typical financial services franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $3K | $12K |
| Equipment, build-out, other | $68K | $91K |
| Total initial investment | $96K | $128K |
Source: Jackson Hewitt Tax Service 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $96K – $128K
- Bottom third — review vs category
- Liquid capital req'd
- $3K – $12K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 3.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 6.5%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 6.5% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 9.5% of rev |
What do units actually make?
Average unit sales run 56% below the financial services norm.
Source: FDD 2023 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Jackson Hewitt Tax Service until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$119K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Jackson Hewitt Tax Service unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
- Avg gross sales
- $115K
- Per unit, per year
- Median gross sales
- $86K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 3,060 outlets
- vs category median 94 · large
- Range (low → high)
- $0→$1.4MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2023
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 0 / 10 · above
Compared against 45 Financial Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $115K/year in gross sales. Median is $86K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 9.5% — below the Financial Services median of 16.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -15.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services medians
How Jackson Hewitt Tax Service Compares
Category median of published Financial Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,287
- Opened
- 73
- Last reporting year
- Closed
- 394
- Terminated
- 59
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.5%
- Company-owned
- 2,195
- Corporate units in the system
- % franchised
- 59%
- vs corporate-owned
- Net growth (3-yr)
- -15.8%
- Net unit change over 3 years
- 3-yr CAGR
- -15.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 59
- Not renewed
- 3
- Reacquired
- 132
- Franchisor bought back
- Signed, not yet open
- 42
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 23
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 45 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
45
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 164
- Loan volume
- $60.2M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 4.9%
- on 164 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 95.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 73
- Defaults
- 7
- Typical loan rate
- 6.6%
- avg rate to borrowers
- Franchised industry avg
- 7.8%
- brand beats franchise avg ↓
- Jobs supported
- 4,650
- 7.7 per loan
- Lender concentration
- 8%
- top lender's share
Borrower mix: 18% went to startups / new businesses, 82% to established operators
Franchise vs independent — in tax preparation services, franchised businesses charge off at 7.8% vs 17.7% for independents — franchising is associated with 56% lower SBA default risk in this category.
Vintage analysis
Jackson Hewitt Tax Service charge-off rate by loan vintage
Top lenders financing Jackson Hewitt Tax Service franchisees
Showing 3 of 73 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Jackson Hewitt Tax Service from SBA 7(a) FOIA data.
- Principal loss rate
- 2.3%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 6.61%
- Avg chargeoff amount
- $197K
- Lender concentration
- 7.9%
- Job velocity
- 7.7 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 8.2%
- NAICS 541213
- Jobs supported
- 4,650
Top SBA lendersTop lender holds 8% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 13 | $4.1M | 8.3% |
| 2 | HomeTrust Bank | 9 | $13.1M | 0.0% |
| 3 | BankUnited, National Association | 7 | $5.9M | 0.0% |
| 4 | PNC Bank, National Association | 5 | $214K | 0.0% |
| 5 | Trustmark Bank | 5 | $530K | 0.0% |
| 6 | JPMorgan Chase Bank, National Association | 5 | $473K | 0.0% |
| 7 | Truist Bank | 5 | $2.2M | 0.0% |
| 8 | Byline Bank | 5 | $7.5M | 0.0% |
| 9 | Synovus Bank | 4 | $635K | 0.0% |
| 10 | The Huntington National Bank | 4 | $379K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 13 | 2 | 16.7% |
| NCNorth Carolina | 12 | 0 | 0.0% |
| ILIllinois | 11 | 0 | 0.0% |
| FLFlorida | 10 | 0 | 0.0% |
| INIndiana | 10 | 0 | 0.0% |
| CACalifornia | 9 | 1 | 11.1% |
| MSMississippi | 9 | 0 | 0.0% |
| NYNew York | 8 | 0 | 0.0% |
| GAGeorgia | 6 | 0 | 0.0% |
| LALouisiana | 6 | 1 | 20.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 4.9% — 70% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Jackson Hewitt presents HIGH RISK due to contracting franchise system, absent financial disclosure, extensive litigation history suggesting operational/compliance issues, and potentially inadequate unit economics for franchisees.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Pending: (1) Lematta/Casper IPO class action involving CEO Macfarlane (pre-employment); (2) Robinson antitrust class action alleging employee no-poach conspiracy; (3) Zaidi breach of contract/post-termination. Franchisor-initiated FY2023: 7 suits against former franchisees for trademark/post-termination/amounts owed. Concluded: NJ False Claims Act settled $400K; Lomeli consumer fraud settled $100K; 1040 Inc. 94-franchisee incentive payment dispute settled $350K.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated financial statements of parent Jackson Hewitt Tax Service Inc. (JHTS) per Item 21/Exhibit H, fiscal year ended April 30, 2023 (yr1) and April 30, 2022 (yr2); figures stated in thousands in the FDD. Total revenues comprise franchise arrangements ($70,054K), company-owned operations - tax form preparation ($144,656K), attached services ($54,356K), and other ($3,144K).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 55 / 100 verdict
- 01MINORUnit count declining 3.6% YoY (5,197 to ~5,011 units) indicates shrinking franchise system and potential market saturation or franchisee dissatisfaction
- 02HIGHLitigation portfolio reveals recurring business model issues: state investigations into grant programs, class actions over customer fees, franchisee disputes over incentives, and antitrust no-poach provisions suggest systemic franchisor-franchisee tension
- 03MINORTax preparation is highly seasonal (peak Dec-Apr) creating cash flow and staffing challenges; no going concern status suggests franchisor stability questions
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 40,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of franchisor's then-current principal office (currently Jersey City, NJ) |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 13 |
View Item 3 litigation summary
Pending: (1) Lematta/Casper IPO class action involving CEO Macfarlane (pre-employment); (2) Robinson antitrust class action alleging employee no-poach conspiracy; (3) Zaidi breach of contract/post-termination. Franchisor-initiated FY2023: 7 suits against former franchisees for trademark/post-termination/amounts owed. Concluded: NJ False Claims Act settled $400K; Lomeli consumer fraud settled $100K; 1040 Inc. 94-franchisee incentive payment dispute settled $350K.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 34 hrs
- Training location
- Sarasota, Florida (New Leader Academy); online modules/webinars for OJT components
- Ongoing training
- Required
- Site selection
- Franchisee selects; franchisor must approve before lease is signed
- Franchisor financing
- Not offered
- Item 10
- POS system
- ProFiler
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProFiler
Item 20 · call current owners
Franchisee Contacts
1,974 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jackson Hewitt Tax Service franchise?
The total investment to open a Jackson Hewitt Tax Service franchise ranges from $96K – $128K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Jackson Hewitt Tax Service franchise owners earn?
According to Item 19 of the Jackson Hewitt Tax Service FDD, the average gross sales per unit is $115K. The median is $86K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Jackson Hewitt Tax Service?
Jackson Hewitt Tax Service is franchised by Jackson Hewitt, Inc.. Its parent company is Jackson Hewitt Tax Service Inc.. The ultimate parent named in the FDD is Assist Holdings L.P. (majority owner Corsair Assist, L.P.). Source: FDD Item 1, 2023 filing.
What is Item 19 in the Jackson Hewitt Tax Service FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Jackson Hewitt Tax Service FDD and qualifies whose outlets they describe.
What is Jackson Hewitt Tax Service's franchise failure rate?
Based on SBA 7(a) loan data, Jackson Hewitt Tax Service has a charge-off rate of 4.9% across 164 loans, meaning 4.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Jackson Hewitt Tax Service franchise locations are there?
As of their most recent FDD filing, Jackson Hewitt Tax Service has 5,287 total units in the United States, including 3,092 franchised units and 2,195 company-owned units. 73 new units were opened in the latest reporting year.
Is Jackson Hewitt Tax Service a good franchise to buy?
FranchiseVerdict rates Jackson Hewitt Tax Service as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.