# Jackson Hewitt Item 19 Deep Dive: $87K Median — Read the Seasonality

> 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.

**Last updated**: 2026-06-05
**URL**: https://vetmyfranchise.com/blog/jackson-hewitt-item-19-deep-dive?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md

> **Quick answer:** Jackson Hewitt's Item 19 reports an $87K median across 2,663 franchised territories for the tax season ending April 2025. The number looks alarmingly low until you understand the business model: this is a 4-month seasonal franchise operating primarily January-April, with revenue concentrated into roughly 100 active days. The AUV-to-investment ratio at the midpoint runs 1.4×, and at the low end (Walmart-kiosk format), the ratio can hit 4-5×. The deal works as a seasonal capital-light franchise; it doesn't work if you're underwriting it like a year-round business.

## The Disclosure

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.

## Why the Headline Number Is Misleading Without Context

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:
- **January-April**: 90-95% of annual revenue. Heavy customer flow, peak staffing, 60-80 hour work weeks for the operator.
- **May-December**: 5-10% of annual revenue. Limited operations (year-round bookkeeping for some customers, IRS notice resolution, off-season tax planning). Most franchised locations operate on reduced schedules or close entirely during this window.

The math becomes more reasonable when reframed:
- $87K annual revenue compressed into ~100 active days = ~$870/day operating average
- A solo operator with two seasonal staff at peak can handle $1,500-$2,500/day in customer flow
- The location footprint is small (often 600-1,200 sq ft, or a kiosk inside a Walmart)
- Operating expenses outside tax season are minimal (rent reduction, staff layoffs, marketing pause)

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.

## The Walmart Kiosk Channel Is a Real Variable

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:**
- Investment: $15K-$30K
- Annual revenue: $40K-$80K typically
- Operating margin: 30-45% (Walmart provides traffic; minimal marketing needed)
- Ratio: 2-3× at acquisition

**Standalone storefront format:**
- Investment: $60K-$105K
- Annual revenue: $80K-$200K typically
- Operating margin: 15-25% (full rent burden, marketing required)
- Ratio: 1-2× at acquisition

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.

## How Jackson Hewitt Compares to Tax Franchise Peers

| 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](/franchise/jth-tax-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md), 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 franchise breakdown](/blog/best-financial-services-franchises?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) and Liberty Tax coverage at [JTH franchise page](/franchise/jth-tax-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md).

## Year-One Reality

A new Jackson Hewitt territory in tax season 1 typically generates:

- January (ramp): $5K-$10K monthly (early-filer customer pickup)
- February (peak): $30K-$55K monthly (heaviest customer flow)
- March (peak continues): $25K-$45K monthly (deadline approaching)
- April (closing): $10K-$20K (last-minute filers, then off-season ramp-down)
- May-December: $1K-$5K total (year-round customers, IRS resolution work)
- Annualized year-one: $45K-$80K

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.

## What This Means for Buyers

- **The seasonality is the whole story.** Underwrite this as a 100-day-a-year business, not a year-round franchise. Operating cash flow needs to cover 12 months of fixed costs from 4 months of revenue.
- **Choose the format that matches your capital.** Kiosk format produces better ratios at low capital; standalone produces more absolute dollars at higher capital. They are different deals inside the same brand.
- **Customer retention drives long-term value.** Year-one revenue is the lowest; the franchise asset compounds through year-over-year retention. Plan to operate 5+ years to capture the full value of the customer book accumulation.
- **Royalty structure is steep.** 3-15% sliding plus 6.5% ad fund means franchisor share is 10-22% of revenue. Net unit margins are accordingly compressed compared to lower-royalty franchises.
- **Operator profile fits seasonal-capable operators.** A tax-prep franchise rewards operators who can work intensely for 4 months and lightly for 8. It does not fit operators looking for steady year-round operations or absentee-owner models.

For broader category context, see our [tax franchise breakdown](/blog/best-financial-services-franchises?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) and [Item 19 average vs. median](/blog/item-19-average-vs-median-survivorship-bias?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md). For brand-specific cost detail, the live [Jackson Hewitt franchise page](/franchise/jackson-hewitt-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md).

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## Brands mentioned in this post

- [JTH Tax](/franchise/jth-tax-llc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)
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