Data verified 2026-04-25
About Jackson Hewitt Franchise
Jackson Hewitt Tax Service operates a tax preparation franchise with approximately 5,167 US locations as of the most recent FDD, split between approximately 2,744 franchised units and 2,423 corporate-owned units. The franchise is owned by Jackson Hewitt Inc., a privately held company under the ownership of Corsair Capital, a private equity firm.
Total initial investment ranges from $15,000 to $105,000, with some sources citing up to $127,500 depending on location format and market. The initial franchise fee is $25,000. The lower entry cost relative to other retail franchises reflects the modest physical footprint of a tax preparation office and the seasonal-only operating window for the bulk of revenue.
Ongoing royalty is reported at up to 15% of gross sales, well above retail-services norms. The marketing and advertising fund contribution runs 6.5 to 7% of gross sales. Combined ongoing fees of roughly 21 to 22% of gross sales materially compress operator economics in any given tax season.
From a franchise due diligence perspective: The investment range above is the FDD's estimate. Your actual costs, including lease deposits, working capital shortfalls, build-out overruns, and the income you give up while launching, are almost always higher. Plan for the higher number. Use the tools below to calculate what this franchise will really cost you.
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Franchise Disclosure Documents are public records in several states. Search for "Jackson Hewitt" on these free state databases:
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Analyze Your FDD Free Profit CalculatorWhat the Jackson Hewitt FDD reveals
Based on the Jackson Hewitt 2024 Franchise Disclosure Document and independent FDD aggregator analysis published by Franchise Chatter, FranchiseTimes, SharpSheets, and FDD Exchange. Data verified 2026-04-25.
Item 5 and 6: Fee Structure
Initial franchise fee is $25,000 per office. Ongoing royalty can be as high as 15% of gross sales according to multiple FDD aggregator sources, although some legacy disclosures reference a lower 3% rate. Confirm the current royalty in Item 6 of the most recent FDD because the spread between 3% and 15% is the difference between viable and unviable. National Advertising Fund and marketing contributions run 6.5 to 7% of gross sales. Combined ongoing fees of approximately 21 to 22% of gross sales are at the high end of the franchise universe.
Seasonal Revenue Concentration: The Hidden Risk
Tax preparation is one of the most seasonally concentrated retail revenue streams in franchising. The bulk of US tax-return income is earned between mid-January and April 15, with a smaller October extension push. That means your fixed costs (rent, software licensing, training, manager retention) run year-round but your revenue compresses into roughly 90 days. Item 7 startup costs do not include the working capital needed to bridge the May-through-December trough. Plan for an additional 6 to 9 months of operating reserves on top of the $15K to $105K Item 7 number.
Item 20: Franchisee-to-Corporate Ownership Mix
Jackson Hewitt operates approximately 2,744 franchised units alongside 2,423 corporate-owned units, an unusually balanced mix that often signals one of two things in franchising: the corporate stores act as a profit floor for the brand (good for franchisees because the corporate operators have skin in the game) or the corporate stores compete directly with franchisees in shared markets (bad for franchisees). Review Item 12 territory protection and ask current franchisees whether corporate-owned offices encroach on their service areas.
Item 3: Litigation History
Tax preparation franchises in general have higher-than-average litigation exposure due to the regulatory nature of the work, IRS oversight, and customer expectations around refund accuracy. Pull the most recent FDD Item 3 and review both franchisor and franchisee litigation, plus FTC regulatory actions, before signing. Jackson Hewitt's parent has been under Corsair Capital ownership since 2018, and PE-owned franchise systems sometimes carry litigation patterns from prior ownership eras.
Key Questions Before Investing in Jackson Hewitt
- What is the actual royalty rate on the current FDD, 3% or 15%? Pull Item 6 and confirm with three current franchisees. The economics differ by an order of magnitude between those two rates.
- What is the off-season cash burn? Rent, software licensing, training, base manager retention, plus any local marketing in the run-up to January. Most prospective franchisees underestimate this by a factor of 2.
- Does the corporate-owned store footprint compete with franchisee territories in your specific market? Pull Item 12 and the franchisee directory in Item 20.
- What does Item 3 reveal about IRS, FTC, or state regulatory actions in the last 7 years? This is unusually material for tax-prep franchises.
- How much working capital do you actually need, including 6 to 9 months of off-season operating reserves on top of the Item 7 startup costs?
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Disclaimer: Investment figures shown are from publicly available Franchise Disclosure Documents filed with state regulators. Figures may vary by location and FDD year. This page is for educational purposes only and does not constitute legal, financial, or investment advice. Always review the most current FDD and consult with a qualified franchise attorney before making any investment decision.