Jackson Hewitt Franchise Review 2025: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

JACKSON HEWITT INC. fits first-time franchise buyers looking for a mature financial services concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$15K - $105K

Franchise fee (Item 5)

$25K

Royalty (Item 6)

15% + 6.5% ad

Item 19 median rev

$87k

System size (Item 20)

2,744 +5

Agreement term

10 yrs

Years in business

41+ yrs

Company-owned units

2,423

Item 3 litigation

6 suits

Buyer qualifications

✓Exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed•6 Item 3 cases

Data extracted from the 2025 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 15% + ad fund 6.5% on gross sales.

PROJECTED ANNUAL SALES$100,000

$100k$2M

Royalty (15%)

Ad fund (6.5%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

5,167

Total units open

2,744 franchised + 2,423 company-owned as of April 30, 2025

76 franchised; 50 company-owned

Units opened last year

fiscal year ended April 30, 2025

102 franchised ceased operations; 38 company-owned closed (fiscal year ended A

Units closed last year

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2025 filing.

4

Risks to review

3

Strengths identified

5

Questions to ask

Industry Benchmarks

How Jackson Hewitt ranks against 29 Financial Services peers we've analyzed.

Initial investment

6th pct · of 29 peers

Franchise fee

24th pct · of 29 peers

System size

93rd pct · of 29 peers

Financial Services industry averages

Avg investment

$58K - $182K

Avg franchise fee

$37K

Avg system size

458

Franchises analyzed

29

How Jackson Hewitt stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Jackson Hewitt Disclosed $25K $15K - $105K 15% 2,744
Renegade InsuranceSimilar price Disclosed $20K $28K - $101K 20–100% 1
Ameriprise Financial ServicesBiggest system Disclosed $2K $10K - $138K 72–91% 3,738
Brightway InsuranceTop-rated in category Disclosed $25K $43K - $187K 351

Compare side-by-side ↗

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Investment Guide

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Most franchises take 12-24 months to reach profitability, but that number hides massive variation by industry, investment level, and market conditions. Here's how to estimate your actual timeline and plan your financial runway.

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Financial Analysis

Item 19 Shows Revenue, Not Profit: Build a Pro-Forma

Item 19 hands you an average revenue number and stops there. Here's the step-by-step way to haircut that top-line, layer in COGS, labor, occupancy, the fee stack, and debt service, and land on the profit you'd actually take home.

Learn more →

Get franchise information FREE

Frequently Asked Questions

How much does a JACKSON HEWITT INC. franchise cost?

JACKSON HEWITT INC. requires a $25,000 initial franchise fee and a total initial investment range of $14,900–$105,000, per the most recent FDD on file.

Does JACKSON HEWITT INC. disclose financial performance (Item 19)?

Yes. JACKSON HEWITT INC. discloses Item 19 financial performance representations with reported revenue around $86,880. See the financials sub-page for the full distribution.

What ongoing fees does JACKSON HEWITT INC. charge?

Franchisees pay a royalty of 15% of Gross Volume of Business and an advertising fund contribution of 6.5% of Gross Volume of Business on gross sales as defined in Item 6 of the FDD.

How many JACKSON HEWITT INC. locations are there?

As of their 2025 FDD, JACKSON HEWITT INC. has 2,744 total locations, with 5 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does JACKSON HEWITT INC. grant exclusive territory?

Yes. JACKSON HEWITT INC. grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.

What are the renewal and exit terms?

Per the FDD, JACKSON HEWITT INC. discloses an initial agreement term of 10 years, a transfer fee of $10,000. Review Items 10 and 17 for the full renewal and termination provisions.

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