Jackson Hewitt Tax Service
Jackson Hewitt Tax Service offers tax preparation services and related financial products under a well-known brand, serving the tax assistance market with both full-service locations and kiosk options.
Jackson Hewitt Tax Service franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening a standard storefront office ranges from $71,050 to $105,000 for new franchisees and from $44,350 to $78,000 for existing franchisees. For kiosk locations, the range is between $14,900 and $42,500. This includes an initial franchise fee of $25,000 paid in a lump sum when signing the Franchise Agreement. [p.1, p.14]
What is the initial franchise fee?
The initial franchise fee is $25,000 and it is payable in a lump sum when you sign the Franchise Agreement [p.14, p.102]. This fee is non-refundable under any circumstances [p.119].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of the tax preparation fees and other revenue generated by the franchisees [p.365]. Advertising and marketing fees do not create a fiduciary relationship; they establish an ordinary commercial relationship for mutual economic benefit [p.38]. This isn't specified in the excerpts regarding any reduction or special structure for advertising and marketing fees.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's term length isn't specified in these excerpts. However, if you meet certain criteria and follow the renewal procedure, you have the option to renew your franchise rights for an additional term of ten (10) years [p.171].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without good cause as determined by the franchisor. Good cause includes but is not limited to specific reasons, and the franchisor may also have a right of first refusal to purchase the franchise instead [p.5].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts detail termination rights for the franchisee but do not specify the grounds for the franchisor to terminate the agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
Based on [p.6], if the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000, you may be required to escrow your initial investment and other funds until certain obligations are fulfilled. This isn't specified in the excerpts for higher net worth requirements or specific liquid capital amounts beyond this condition.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, franchisor-owned outlets, or other competitive brands controlled by the franchisor within your designated territory [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive initial training program called New Leader Academy (NLA), which includes live instructor-led classroom events, online modules, resource documents, and conference calls [p.35]. This training must be completed to the franchisor's satisfaction before software can be provided and the franchise opened [p.36]. Ongoing support includes follow-up training as needed, with in-person attendance required for initial training but potentially offered via web conferencing for subsequent sessions [p.128].
How many franchised outlets are there, and how many have closed or been terminated?
As of April 30, 2025, there were 2,744 franchised Jackson Hewitt offices reported as active. According to [p.73], during the last three years, a high percentage (20%) of these franchised outlets were terminated, re-acquired, or ceased operations for other reasons. This indicates that approximately 548 out of 2,663 covered offices may have closed or been terminated over this period.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it [p.50], but they do not make any financial performance representations other than those included in Item 19 of the FDD [p.52]. If you receive any other financial performance information or projections, you should report it to the franchisor's management and relevant regulatory agencies [p.52].
What am I restricted to selling, and where must I buy supplies?
You are required to offer all tax preparation and related financial products and services that the franchisor designates or approves [p.45]. You may only sell those approved products and must obtain them from the franchisor or a third party designated by it [p.45]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by it, which might be more expensive than similar items available elsewhere [p.3].