How much does it cost to open a Jackson Hewitt Tax Service franchise?

The total initial investment for a Jackson Hewitt Tax Service franchise ranges from $71,050 to $105,000. This includes the franchise fee of $25,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Jackson Hewitt Tax Service franchise?

Jackson Hewitt Tax Service franchisees pay a 6.0% royalty fee and a 6.5% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Jackson Hewitt Tax Service franchise?

Based on Item 19 financial performance data, the median Jackson Hewitt Tax Service franchise generates $114,848 in annual revenue. Estimated owner profit is approximately $25,841.

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Business Services 2,744 Units

Jackson Hewitt Tax Service Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$71,050 – $105,000

Franchise Fee

$25,000

Royalty Rate

6.0%

Initial Investment Range

Low: $71,050 High: $105,000

The total initial investment to open a Jackson Hewitt Tax Service franchise ranges from $71,050 to $105,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $25,000.

Midpoint estimate: $88,025

Franchise Fee

$25,000

One-time initial fee

The Jackson Hewitt Tax Service franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Jackson Hewitt Tax Service brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

6.5%

of gross revenue

Total Ongoing Fee Burden: 12.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee (Franchise Agreement, Existing Franchisee Expansion Program – Kiosks)	15.0	PCT	Tiered structure: Year 1: 3%, Year 2: 6%, Year 3: 9%, Year 4+: 15%. Payment made on 5th and 20th of month Jan-Apr for preceding half month, monthly by 5th May-Dec. Rate increases 1% during non-compliance.
Royalty Fee (Existing Franchisee Expansion Program – Storefront)	15.0	PCT	Tiered structure: Year 1: 7%, Year 2: 12%, Year 3+: 15%. Same payment schedule as Kiosks.
Royalty Fee (NFA Renewal Addendum)	15.0	PCT	15% or lower if original franchise agreement provided lower rate. Tax course revenue receives 6% reduction in royalty. Same payment schedule.
Advertising Fee	6.5	PCT	6.5% base rate, increases to 7% if New Customer Growth Rate exceeds 2% for two consecutive years. $5,000 minimum local advertising in first Tax Season ($1,000 for Affinity/National Account locations). Same payment schedule as Royalty.
Technical Assistance Fee	N/A	VARIABLE	Charged only for substantial number of technical support cases. Due on March 15 for Jan 1-Feb support and May 15 for March 1-April 30 support.
Technology Fee	N/A	VARIABLE	Covers proprietary software licenses, maintenance and support. May include per-return efile fees for renewals. Due on invoice.
Amendment Fee	250.0	FIXED	Greater of actual costs or $250. Due at time of amendment.
Direct Deposit User or License Fee	N/A	VARIABLE	Pass-through of IRS or state tax authority electronic filing fees. Due on invoice.
Cooperative Program Participation Fee	50.0	PCT	Optional program. Franchisee reimburses 50% of total Qualifying Marketing Expenditures. Franchisor may change percentage or discontinue program. Due on invoice.
Service and Product Testing Fee	N/A	VARIABLE	Reimburses franchisor's expenses for evaluating proposed services or products. Due on invoice.
Payments to Customers	N/A	VARIABLE	Reimbursement for customer complaint resolution paid by franchisor on behalf of franchisee. Due on invoice.
Transfer Fee	10000.0	VARIABLE	$10,000/Territory for 1-5 Territories; $7,500/Territory for 6-15; $5,000/Territory for 16+. Max of 12.5% of purchase price, min $2,500 per transferor. $1,000 for non-controlling transfers. Due at time of transfer.
Processing Fee	1000.0	VARIABLE	400-1,000 returns: $1,000; 1,001-2,500: $2,000; 2,500+: $2,500. Applies when acquiring Competing Business with franchisor assistance. Due immediately after closing.
Late Gross Volume Report Fee	50.0	FIXED	$50 per day for failure to timely submit Gross Volume Report. 3-day grace period for Good Payers. Due on invoice.
Interest on Late Payments	18.0	PCT	Lesser of 18% per year or highest legal state rate. Due on invoice.
Insufficient Funds Charge	100.0	FIXED	Due on demand when checks are returned or insufficient funds for EFT withdrawals.
Non-Compliance Fee	1.0	PCT	1 percentage point increase to Royalty rate during non-compliance with Franchise Agreement. Continues until all defaults cured. 5-day cure period for monetary defaults, 10-day for non-monetary. Due on demand.
Audit Expenses	N/A	VARIABLE	Reimbursement of travel, room, board and third-party expenses when audit is due to suspected non-compliance or reveals 2%+ underreporting in 2+ periods. Includes estimated fees for underreported revenue if franchisee impedes audit. Due on invoice.
Enforcement Costs	N/A	VARIABLE	Franchisee pays all costs if franchisor prevails in legal action. Due upon settlement or judgment.
Indemnity	N/A	VARIABLE	Franchisee must defend and hold franchisor harmless for legal claims resulting from franchisee's acts and omissions. Due upon settlement or judgment.
Liquidated Damages	N/A	VARIABLE	Due if terminated for default or by franchisee without cause. Calculated based on remaining months × combined royalty/ad fee rates × average monthly GVB. Only applies if 1/3+ (first 5 years) or 3/5+ (after 5 years) of units fail to operate. Waived if buyer approved and sale consummated. Due on demand.
Failure to Cooperate with Audit Fee	5000.0	FIXED	$5,000 for first failure; $10,000 for second or subsequent. Due on demand.
Failure to Submit Business Improvement Plan Fee	2500.0	FIXED	$2,500 for first failure; $5,000 for second. Due on demand.
Unauthorized Advertising or Marketing Fee	10000.0	FIXED	Due on demand for unauthorized advertising/marketing.
Fee for Violating a Manual Provision	10000.0	FIXED	Due on demand for operating in breach of Manual provisions.

What You Get

Financial Performance (Item 19)

Median Revenue

$114,848

per year, per location

Profitability Estimate

Estimated Owner Profit

$25,841

per year

Profit Margin

22.5%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 3.4 years

Based on midpoint investment of $88,025 and estimated annual owner profit of $25,841.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.4%

Low risk — below industry average

Net Unit Growth

-3413 units

From 2023 to 2026

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2023	3413	+73	-59	—	3092
2024	3092	+96	-7	—	2981
2025	2981	+76	-37	—	2744
2026	—	+33	—	—	—

Is a Jackson Hewitt Tax Service Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Jackson Hewitt Tax Service franchise opportunity:

Overall Score

72/100

Strong opportunity

Est. Payback Period

3.4 yrs

Average payback

Risk Level

Low

1.4% annual closure rate

Jackson Hewitt Tax Service scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $114,848 and a combined fee burden of 12.5% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.