Jackson Hewitt Tax ServiceFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Jackson Hewitt Tax Service franchise requires a total initial investment of $71K – $105K, including a $25K franchise fee and an ongoing 3.0% royalty[2]. Per the 2025 FDD, average unit revenue was $118K[2]. SBA 7(a) loans show a 4.9% charge-off rate across 164 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $71K – $105K
- 40th pct Financial Ser…
- Avg gross sales
- $118K
- 4th pct Financial Ser…
- Royalty
- 3.0%
- 4th pct Financial Ser…
- Units
- 5,197
- 63rd pct Financial Ser…
- SBA default
- 4.9%
- system-wide median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1986. Systems this mature have refined operations and brand recognition.
Franchised units fell from 3413 to 2744 over 3 years. Investigate why operators are leaving.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $71K – $105K including a $25K franchise fee, 3.0% ongoing royalty.
- Average unit revenue of $118K/year (median $87K).
- Verdict D (Below Average) with a risk score of 75/100. SBA loan charge-off rate of 4.9% across 164 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -12.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Jackson Hewitt Inc.
- Parent company
- Jackson Hewitt Tax Service Inc. (JHTS)
- Incorporated in
- VA
- HQ
- 501 N. Cattleman Road, Suite 300, Sarasota, Florida 34232
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $272
- vs $279 prior year
Overview
About
Franchisees operate Jackson Hewitt tax preparation and filing locations, primarily serving middle to lower-income customers during tax season (January-April peak). Day-to-day operations include conducting client tax interviews, preparing returns, managing e-filing, promoting refund advance products, and handling customer service—operations heavily dependent on seasonal demand with significant off-season downtime.
- CEO
- Greg Macfarlane
- Headquarters
- FL
- Founded
- 1985
- FDD year
- 2025
- States available
- 45
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $3K | $12K |
| Equipment, build-out, other | $43K | $68K |
| Total initial investment | $71K | $105K |
Source: Jackson Hewitt Tax Service 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$16K
13.5% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
6.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $71K – $105K
- Near category avg vs category
- Liquid capital req'd
- $3K – $12K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 3.0%
- percentage_of_gross · 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 |
Financial Performance
- Avg gross sales
- $118K
- Per unit, per year
- Median gross sales
- $87K
- Item 19 type
- Average and Median Gross Volume of Business
- Sample size
- 2663 units
- vs category median 97 · large
- Range (low → high)
- $403→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 0 / 5 · above
Compared against 58 Financial Services brands
vs Financial Services averages
How Jackson Hewitt Tax Service Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,197
- Opened
- 76
- Last reporting year
- Closed
- 102
- Turnover rate
- 2.0%
- Company-owned
- 2,423
- Corporate units in the system
- % franchised
- 53%
- vs corporate-owned
- Net growth (yr3)
- -3.6%
- Net unit change last year
- 3-yr CAGR
- -12.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 52
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 44 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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%
- 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
Vintage analysis
Jackson Hewitt Tax Service charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Jackson Hewitt Tax Service's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 33-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 75 / 100 rating
- 01MINORUnit count declining 3.6% YoY (5,197 to ~5,011 units) indicates shrinking franchise system and potential market saturation or franchisee dissatisfaction
- 02MINORNo net income disclosure (Item 19) prevents financial viability assessment; average revenue of $117,660 may be insufficient after 3-15% royalties, operating costs, and seasonal tax service volatility
- 03HIGHLitigation 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
- 04MEDRoyalty structure up to 15% is punitive on disclosed average revenue of $117,660 (up to $17,649 annually), creating thin margins before expenses
- 05HIGHTax preparation is highly seasonal (peak Dec-Apr) creating cash flow and staffing challenges; no going concern status suggests franchisor stability questions
- 06MEDHigh initial investment ($71,050-$105,000) combined with declining unit count and undisclosed profitability creates unfavorable risk-reward ratio
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic area defined by streets/boundaries/coordinates |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 5 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 34 hrs
- POS system
- ProFiler
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProFiler
Item 20 · call current owners
Franchisee Contacts
1,958 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jackson Hewitt Tax Service · FDD (2025) PDF
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 $71K – $105K, 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 $118K. The median is $87K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 5,197 total units in the United States, including 3,413 franchised units and 2,423 company-owned units. 76 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 D-grade franchise with a risk score of 75 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.