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Jackson Hewitt Tax Service Franchise
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Jackson Hewitt Tax Service Franchise

Jackson Hewitt Tax Service Franchise

Franchise Article Author: The Franchise Guide

Tax preparation service is a booming market. If you are an experienced business owner, or even if you are considering owning your own business for the first time, you may find the possibilities of this franchise opportunity to be exciting and rewarding. One of such franchised unit is Jackson Hewitt Tax Service, Inc.

Jackson Hewitt Tax Service, Inc. prepares tax returns for customers in the United States. Its network comprised 4,295 franchised offices and 642 company owned offices, as of January 31, 2004.The company’s financial products include the Refund Anticipation Loan, Accelerated Check Refund, Assisted Direct Deposit, Jackson Hewitt Cash Card, the Holiday Express Loan Program, Gold Guarantee, and Money Now. Its wholly owned subsidiary, Jackson Hewitt, Inc., franchises the Jackson Hewitt Tax Service brand and owns Tax Services of America, Inc., which operates the company owned offices. The company was incorporated in 2004 and is headquartered in Parsippany, New Jersey. Ironically, company cofounder John Hewitt owns the competing Liberty Tax Service, as he had sold his interest in Jackson Hewitt in 1997 and is no longer associated with his first company

Jackson Hewitt Tax Service provides full service to tax payers. Jackson Hewitt tax service specializes in computerized federal and state preparation of individual returns. It began franchising in 1986, the same year that the IRS introduced electronic filing.

Specializing in electronic filing (IRS e-file), Jackson Hewitt Tax Service provides individual federal and state income tax preparation and facilitates related financial products. Most Jackson Hewitt offices are independently owned and operated. Jackson Hewitt Tax Service was recognized by Entrepreneur magazine as the Fifth Best Franchise for 2004 in the Annual Franchise 500 List and as the #1 rated tax preparation services franchise in the world for the 11th consecutive year. In 2006, it had 5379 US franchises and 643 company owned franchises

The success of Jackson Hewitt Tax Service is largely due to its franchisees, and they remain committed to franchising as a predominant way of doing business. A key factor in the growth of their franchisees' businesses, as well as the Jackson Hewitt system as a whole, is the emphasis they place on recruiting, training, developing, and supporting their franchisees. Jackson Hewitt Tax Service invests heavily in marketing and advertising. Their marketing and advertising efforts include network television advertisements, direct to consumer marketing, sponsorships of the Professional Bowlers Association and the Roush Racing team, a participant on the NASCAR Nextel Cup racing circuit, and regional and local television, radio, and outdoor advertising.

If you are a prospective franchisee of Jackson Hewitt Tax Service, you will have to pay a franchise fee of about $25 K. The start up cost varies between $40K to $80 K. Express/kiosk options are available for franchisees. Ongoing royalty fee is 15%. Term of agreement is for 10 years and is renewable. In order to qualify to hold a franchise of Jackson Hewitt Tax Service you must have a cash liquidity of $50K.Franchisees can hold more than one unit. In fact 83% of all franchisees own more than one unit. Absentee ownership of franchise is allowed. 90% of current franchisees are owner/operators. The minimum number of employees required is 1. Jackson Hewitt Tax Service provides training to its franchisees for 4 days at the headquarters and a regional training of 2 days at the location. The franchisees are provided with an ongoing support by newsletters, meetings toll free phone lines, grand opening for the outlet, internet facilities, security and safety procedures, purchasing cooperatives, field operations and evaluations. . It provides its franchisees with good marketing support through national and regional advertising.

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