FDD Analysis Report
Jackson Hewitt Tax Service
JACKSON HEWITT INC.
Key Metrics At-a-Glance
See FDD
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of gross sales
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of gross sales
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112 units
N/A
Not disclosed
About This Franchise
## Executive Summary
Jackson Hewitt is a major tax preparation franchise competing with H&R Block and Liberty Tax. With low investment of $96K-$128K, it offers accessible entry. However, the 15% royalty fee (after year 2) plus 6% advertising fee creates high ongoing costs. Seasonal nature limits revenue to tax season.
## The Numbers
**Initial Investment:** $96,050 - $127,500 **Franchise Fee:** $50,000 **Royalty Fee:** 5% (Year 1), 10% (Year 2), 15% (Year 3+) or minimums **Advertising Fee:** 6% of gross volume **Contract Term:** 10 years
## Key Considerations
The tiered royalty structure escalates significantly - reaching 15% plus 6% advertising (21% total fees). Business is highly seasonal with most revenue during January-April tax season. Low investment makes entry accessible but fees impact profitability. Competes with H&R Block, Liberty Tax, and independent preparers.
## Validation Questions
1. What is your actual take-home during tax season? 2. How do the high royalty percentages affect your margins? 3. What do you do during the off-season? 4. Would you invest again?
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | See FDD of Gross Revenue | - |
| Brand Fund | See FDD of Gross Revenue | - |
Item 19: Financial Performance Representations
No Financial Performance Representations
This franchisor does not provide Item 19 financial performance representations. Approximately 35% of franchisors choose to disclose this information.
Recommendation: Request financial information directly from existing franchisees listed in Exhibit I during your due diligence. Contact 10-15 franchisees to gather revenue and profitability data before making an investment decision.
Learn more about Item 19 disclosures →Risk Assessment
Items to Review
No notable items identified
Positive Indicators
Review FDD for positive factors
Due Diligence Recommendations
Contact 10-15 existing franchisees to gather operational and financial insights
Franchisee interviews are the most valuable source of information about day-to-day operations and realistic financial expectations.
Have a franchise attorney review the Franchise Agreement
Professional legal review can identify unfavorable terms and potential negotiation points.
Research local market conditions and competition
Understanding your specific market is essential for success, regardless of system-wide performance.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
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Learn More About FDDs
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Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
FDD Item 5: Initial Fees Explained
What you pay upfront to become a franchisee
Item 20: Franchisee Information
Analyze system growth and contact franchisees
About Jackson Hewitt Tax Service Franchise
Jackson Hewitt Tax Service is a franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2026 Franchise Disclosure Document, the system has grown to 112 locations across the United States. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
Jackson Hewitt Tax Service Franchise Cost
The total initial investment required to open a Jackson Hewitt Tax Service franchise ranges from See FDD for details. This investment includes the initial franchise fee of See FDD for details, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of See FDD of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
Jackson Hewitt Tax Service Item 19 Financial Performance
Jackson Hewitt Tax Service does not provide financial performance representations in Item 19 of their FDD. Approximately 35% of franchisors choose to disclose this information. Without franchisor-provided financial data, prospective franchisees should contact existing franchisees directly to gather information about revenue, expenses, and profitability. The franchisee contact list in Exhibit I provides names and contact information for current and former franchise owners.
Jackson Hewitt Tax Service Franchise Growth and System Health
The Jackson Hewitt Tax Service franchise system has shown stable performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
Jackson Hewitt Tax Service Franchise Investment Considerations
The Jackson Hewitt Tax Service FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for Jackson Hewitt Tax Service
Before investing in a Jackson Hewitt Tax Service franchise, prospective franchisees should:
- Contact multiple existing franchisees to gather operational and financial insights
- Have a franchise attorney review the Franchise Agreement and all exhibits
- Research local market conditions and competitive landscape
- Develop a detailed business plan with realistic financial projections
- Verify all information provided by the franchisor independently
Download the Jackson Hewitt Tax Service FDD
Access the complete Jackson Hewitt Tax Service Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.