Jackson Hewitt Item 19: $87K median across 2,663 franchised territories for tax season ending April 2025. Why the low absolute revenue works at low investment, and how Jackson Hewitt compares to Liberty Tax and H&R Block.
Quick answer Jackson Hewitt reports an $86,880 median revenue across 2,663 franchised territories for the fiscal year ending April 30, 2025. Item 7 investment runs $14,900 to $105,000 with a $25,000 franchise fee, a 3-15% sliding royalty, and a 6.5% ad fund. The model is seasonal, earning 90-95% of revenue January through April.
Jackson Hewitt’s most recent Item 19:
| Metric | Value |
|---|---|
| Sample size | 2,663 franchised territories |
| Sample criteria | All franchised units |
| Reporting period | Fiscal year ending April 30, 2025 (one full tax season) |
| Median annual revenue | $86,880 |
| Total system units | 2,744 |
| Total investment (Item 7) | $14,900 - $105,000 |
| Franchise fee | $25,000 |
| Royalty rate | 3.0% to 15.0% (sliding scale) |
| Ad fund | 6.5% of Gross Volume of Business |
The 2,663-territory sample is large and methodologically conservative. The fiscal year ending April 30, 2025 captures essentially one complete tax season (January through mid-April 2025). For a tax-preparation business, this is the appropriate measurement window — the revenue concentrates almost entirely into this period.
The royalty structure is notable: 3-15% sliding scale plus 6.5% ad fund. At the high end of the scale, the franchisor captures more than 20% of unit revenue — among the highest royalty totals in franchising. The sliding scale typically rewards higher-volume locations with lower percentages, but the structure means the franchisor share grows materially as the unit grows.
A reader seeing “$87K median annual revenue” who’s familiar with year-round franchises (where $87K wouldn’t cover the rent of most retail formats) would conclude Jackson Hewitt is a failed franchise. That conclusion misses the operating model.
Tax preparation is a structurally seasonal business:
The math becomes more reasonable when reframed:
The result is that per-operating-day revenue is comparable to small-business benchmarks; the compression into a short window is what makes the annual headline look weak.
Jackson Hewitt operates a meaningful number of franchised locations as kiosks inside Walmart stores. The Walmart-kiosk format has materially different economics from standalone storefronts:
Walmart kiosk format:
Standalone storefront format:
A buyer evaluating Jackson Hewitt should treat these as essentially two different franchise products inside the same brand. The kiosk product is a low-capital, low-revenue, high-ratio operation. The standalone product is a higher-capital, higher-revenue, lower-ratio operation. Most multi-unit franchisees operate both formats.
| Brand | Sample | Median AUV | Investment | AUV/Investment |
|---|---|---|---|---|
| Jackson Hewitt | 2,663 | $87K | $14.9K-$105K | 1.4× |
| Liberty Tax (JTH) | 1,599 | $139K | $59K-$73K (est.) | 2.1× |
| H&R Block (corporate) | larger | $150K+ (est.) | n/a (corporate) | n/a |
| ATAX | smaller | $80K-$140K (est.) | $40K-$60K | 2.5× |
| Tax Pros (smaller) | smaller | $100K (est.) | $50K | 2× |
Jackson Hewitt’s $87K median is the lowest in the major tax-franchise peer set, but the investment is also the lowest. Liberty Tax (JTH Tax, LLC entity) produces $139K at slightly higher investment — somewhat better ratio. H&R Block runs primarily as company-owned operations, so franchised comparison is limited.
For deeper category context, see our tax preparation franchise industry breakdown and Liberty Tax coverage at JTH franchise page.
A new Jackson Hewitt territory in tax season 1 typically generates:
That’s 50-90% of system median, with high variance based on local marketing execution, prior-year customer book acquisition, and whether the operator can convert walk-ins from competing brands.
The year-two and beyond dynamic is critical: tax prep is a high-retention business. Customers who return next year drive 60-75% retention. By year three, an established location has a customer book worth $40K-$60K of recurring revenue independent of new-customer acquisition. The franchise builds value through year-over-year customer accumulation.
For broader category context, see our tax preparation franchise industry breakdown and Item 19 average vs. median. For brand-specific cost detail, the live Jackson Hewitt franchise page.
Get the full 12-section FDD analysis — $49
Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99.
Browse franchises · pick your brand Or see a real sample report →
The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation.
Browse Franchise Library See a real sample report →
$49 per brand · $99 for a 3-brand pack
jackson hewittitem 19tax franchiseseasonal businessfranchise revenuefdd analysis
About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our data & methodology.
Jackson Hewitt's most recent Item 19 reports an $86,880 median annual revenue across 2,663 franchised territories for fiscal year ending April 30, 2025 — which captures one full tax season. The disclosure covers all franchised units.
Jackson Hewitt is a seasonal tax-preparation business. Most franchised locations operate primarily January through April (tax season), with limited or no operations the remaining 8 months of the year. The $87K median is essentially 'tax season revenue' — annualized only because the FDD reporting period is a fiscal year. Per-operating-day revenue is actually competitive with non-seasonal small businesses, but compressed into 100 active days.
At the midpoint, yes. $87K of median revenue against $60K of investment (Item 7 midpoint) produces a ratio of roughly 1.4×. The ratio improves at the low end of the investment range — a $15K-$25K Walmart-kiosk location against $80K-$100K of revenue produces a 4-5× ratio. The category economics rely on extreme operating-cost discipline during the 8-month off-season.
Often yes, particularly for operators acquiring existing customer books. Year-one new-territory revenue typically tracks 50-80% of system median ($45K-$70K) for greenfield, but acquisitions of existing locations can carry the customer book and hit the median in year one. Tax-prep customer retention runs 60-75% year-over-year, so an established location has meaningful revenue floor.
Item 7 reports a total initial investment range of $14,900 to $105,000. The franchise fee is $25,000. Royalty runs 3-15% on a sliding scale (typically tied to volume); ad fund contribution is 6.5% of Gross Volume of Business. The wide investment range reflects two paths: Walmart-kiosk locations (very low capital, ~$15K-$30K) and standalone storefronts ($50K-$105K).
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt