Jackson Hewitt is a service-based franchise in the “low-cost” category that offers franchise opportunities well under the $100,000 investment price tag.
With protected territories, advanced tax preparation software, a sophisticated training and ongoing support program, as well as professional development opportunities, Jackson Hewitt offers some incredible potential for the aspiring franchise entrepreneur.
Market
- Franchising since: 1986
- Locations - U.S.: 5,800+
- Locations - Canada: 0
- Locations - Foreign: 0
- Company Owned: 700+
Costs & Fees
- Total Investment: $49.8K – $94K
- Franchise Fee: $10K – 25K
- Unencumbered Capital Required: $50K
- Net Worth Required: N/A
Other Facts
- Financing: Third party and In-house
- Royalty: 15%
- Advertising Fee: Not specified
- Training: 5 days at head office; some additional training
- Annual revenue: N/A
- Average revenue per location: N/A
Is Jackson Hewitt a Good Franchise Opportunity?
For a tax preparation service, Jackson Hewitt shells out sizzle. As a publicly-traded company, franchise prospects can rely on a solid, financial and management structure supporting its 6,500 franchises. And with an average investment in the $60-70K range, this can make for an interesting opportunity for the diligent, detail-oriented individual.
The tax preparation business may not have the excite factor of operating a restaurant, but it does put you in contact with people who seek the help of a qualified professional. This is a perfect franchise opportunity for someone who appreciates customer satisfaction, problem-solving, and the “numbers” game. But, if the idea of doing repetitive work troubles you, better consider a business with more day-to-day variety.
One of the challenges to this business will be unpredictable cash-flow to be anticipated from a season-driven service. Most of your revenues will be generated during the tax season, yet in the off-season, there are a number of services you can provide to even out the books, such as audit assistance and tax return amendments. But, these services will require ongoing marketing efforts to encourage tax payers to visit your location.
If you don’t have an appreciation for accuracy or accounting practices, you should consider a franchise that is more forgiving when it comes to margins of error. A Jackson Hewitt franchisee will require focus, precision, and a lot more patience than the average human can afford when it comes to crunching numbers.
