Jackson Hewitt Tax Service Franchise
Cost, fees, owner earnings, closure rate and litigation for a Jackson Hewitt Tax Service franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Jackson Hewitt Tax Service discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Average Gross Volume of Business for 2,663 franchised offices: Standard $160,361 (39.1% met/exceeded); Kiosk $60,438 (37.5% met/exceeded). Unaudited data; results may vary.
What a Jackson Hewitt Tax Service franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $25,000 | Item 5 — paid up front, before you open |
| Royalty | 15% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 6.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 21.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $71,050 – $105,000 | Item 7 — franchisor's own low/high estimate |
Royalty escalates 3%-15% over years; 6.5% ad fee; extensive ancillary fees (tech, audit, transfers, non-compliance surcharges).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Jackson Hewitt Tax Service system size and owner turnover
| Total outlets | 2,744 |
| Ceased operations | 102 |
| Terminated by franchisor | 76 |
| Transferred to new owners | 52 |
| Closure rate | 3.7% of outlets |
237 franchised offices closed in FY2025; declining system from 3,413 to 2,744 franchised units over 3 years.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Jackson Hewitt Tax Service worth it? — how it compares to 436 similar franchises
| Ongoing fees | 21.5% of sales | steeper than 97% of other franchises franchises |
| Startup cost | from $71,050 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 3.7% of outlets | worse than 67% of peers |
| Disclosed lawsuits | 5 | more litigious than 83% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Jackson Hewitt Tax Service
The franchisor's framing: Average Gross Volume of Business for 2,663 franchised offices: Standard $160,361 (39.1% me… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Jackson Hewitt Tax Service franchise — frequently asked
- How much does a Jackson Hewitt Tax Service franchise cost?
- The FDD lists a total initial investment of about $71,050–$105,000, including a $25,000 initial franchise fee.
- How much do Jackson Hewitt Tax Service franchise owners make?
- Average Gross Volume of Business for 2,663 franchised offices: Standard $160,361 (39.1% met/exceeded); Kiosk $60,438 (37.5% met/exceeded). Unaudited data; results may vary. We grade this disclosure C for honesty.
- What are the Jackson Hewitt Tax Service franchise fees?
- Jackson Hewitt Tax Service's FDD discloses a $25,000 initial franchise fee, a 15% royalty on gross sales, a 6.5% advertising-fund contribution, for roughly 21.5% of gross sales in recurring fees before rent, labor, or debt service. Royalty escalates 3%-15% over years; 6.5% ad fee; extensive ancillary fees (tech, audit, transfers, non-compliance surcharges).
- What is the Jackson Hewitt Tax Service franchise profit margin?
- Jackson Hewitt Tax Service does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Average Gross Volume of Business for 2,663 franchised offices: Standard $160,361 (39.1% met/exceeded); Kiosk $60,438 (37.5% met/exceeded). Unaudited data; results may vary. Recurring fees alone take about 21.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Jackson Hewitt Tax Service franchise failure rate?
- 237 franchised offices closed in FY2025; declining system from 3,413 to 2,744 franchised units over 3 years.
- How many Jackson Hewitt Tax Service locations are there?
- Jackson Hewitt Tax Service's FDD reports 2,744 total outlets, with 102 that ceased operations in the most recent reporting year and 52 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Jackson Hewitt Tax Service have complaints or lawsuits?
- Jackson Hewitt Tax Service discloses 5 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Jackson Hewitt Tax Service franchise worth it?
- It depends on the numbers, not the pitch. Jackson Hewitt Tax Service scores C on disclosure honesty, carries about 21.5% of sales in ongoing fees, and discloses 5 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2025). FranchiseValidate is independent and not affiliated with Jackson Hewitt Tax Service or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.