UnhappyFranchisee.Com – Are you familiar with the Jackson Hewitt tax franchise opportunity? What do you think? You’re invited to share a comment below.
According to the Jackson Hewitt website, Jackson Hewitt Tax Service Inc. (NYSE: JTX) is an industry leader providing full service individual federal and state income tax return preparation through more than 6,400 franchised and company-owned offices throughout the United States.
After its rapid rise to the #2 position in the industry, Jackson Hewitt has had some rough years and myriad problems. According to Wikipedia:
“The 2007 Department of Justice investigation, poorly constructed financial products, and a company-wide tax law compliance initiative that many insiders believe did more harm than good combined to erase nearly 50% of the company’s market share over merely four years.
“Additionally, the company negotiated out of a default on its debt in May 2009 and technically defaulted for several days in May 2010 (though an agreement with creditors was announced within one week of the ‘default’).
“During the 2010 tax season, Jackson Hewitt was not able to provide its flagship refund anticipation loan product in 50% of its stores, placing it at a operational and marketing competitive disadvantage. The company’s current agreement with creditors requires that it secure refund anticipation loan funding adequate for 100% of its stores by September 30, 2010 and that written commitments from lending institutions be made available to creditors by November 15, 2010. Failure to do either will place the company once more in default.
“The debt indicator is a significant part of the provision of refund anticipation loan funding and its lack of availability is expected to increase the cost of such products to consumers and decrease the level of their availability.
“This IRS change significantly reduces the probability that Jackson Hewitt will be able to comply with its renegotiated loan covenants as discussed above. The stock currently trades below one dollar*.”
* The Jackson Hewitt stock price is listed at $1.11 today
Unhappy Franchisee has received numerous complaints about the rival Liberty Tax Service (see LIBERTY TAX SERVICE Franchise Complaints).
Is Jackson Hewitt franchise have worse problems?
How is the franchisor doing in helping Jackson Hewitt franchisees weather the storm of operational & marketing challenges, and adverse publicity?
Is this simply a franchise (Stock? Tax preparer?) to avoid at all costs?
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
Company responses, clarifications or rebuttals welcome. Contact the author/site admin at UnhappyFranchisee[at]gmail.com.
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View Comments
Frustrated,
You are so predictable! If they had said they had a record year and will double the amount of offices, you would still be mad!!!
Jackson is supposed to emerge from bankruptcy in 60-90 days. Whether or not Jackson Hewitt is in Wal-Marts next tyear is another issue to be revisted at that time.
Rumor has it that Liberty is considering putting a bid in for Wal-Mart locations. Does anyone out there know if that is true or false?
Frustrated,
Then why did you make the investment? Did you know about the $40k and 19% royalties? You fell for the hype? That proves you are not cut out for business!!!That makes me doubt your net worth, unless you inherited it without having done anything, because you would then have known that 99.9% of people are in the business of selling you something for a profit, which is what Liberty did to you. Nobody forced you to do anything. Plus, if you are worth $3mill, why are you so angry and upset about a $40k investment.
That would be like most of us losing $2000 on a stock. We would just get over it and learn our lesson after a few weeks of being angry.
Go open your no name tax business and do your own advertising and if it is successful let me know, i might do the same but my business background and from what i have seen, that is not a better option. Come on, bring something more intelligent to this conversation, then the usual whining.... it is pathetic!
With Liberty's new zero down franchise offer and Walmarts should get them the 1000 offices.
Dudes: MR REFUND is the best brand for 100 Million who get refund$.
1-800-Mr-Refund.com is the number you call to get a refund.
No RAL$ needed.
MR REFUND turns your W2 to cash with his iW-2.com app from your iphone.
What more can you say? Tax is dead. Refunds are fun!!!!!!
Mr. Refund,
Are you related to Mr. Frustrated an Mr. Mike?
MR REFUND will replace dead guy and former employee in WalMart
And be on WalMart.com.
John MR REFUND will do 1 million REFUND$ next year.
How are doing as John's Tax?
Asif Jones seems to be Mr. Refund....
Rumor has it Jackson Hewitt will close over half of its stores this season? Has anyone heard this too?