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.
Recent developments have left franchisees worried and uncertain about their futures. To advocate for greater…
The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…
PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…
U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…
More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…
Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…
View Comments
I do not see this happening unless they lose the Wal-Mart contract.
Is the Wal-Mart contract up this season. I thought it was a 3 year deal?
John Barilla,
Why would Walmart renew with a bankrupt company?
Why would anyone want to buy a Jackson Hewitt Franchise if the are in bankruptcy? When is the Walmart deal going up or renewal? What is the reason Liberty franchisees seem to think Liberty Tax will buy out what is left over of JH?
Wal mart supposedly has a policy of not doing business with a company unless they have been out of bankruptcy for five years. I do not know if this is fact or a myth. I suspect Wal Mart is discussing their options with Liberty, H and R and Jackson Hewitt. I also suspect that given WAL Mart requires the $38 return the return on investment is not there. I did 1/3 of my return count last year as $38 returns. Don't think Wal Mart is a tax return cash cow. Be advised Wal-Mart also requires a seven day a week staffing with over 60 hours- I was almost always over 72 hours a week.
Antonio/Mike/Frustrated,
Three losers or the same loser?
Most Franchise Concepts are scam. I would say a staggering 90% .Why on earth would somebody get into a retail business and only have customers from a radius of 2 km come to them.That is not the way you are going to make money.Anytime the radius of your customer is less than 20 kms you are never going to make money simply because of the law of numbers.
There will never be customers coming to you beyond the 2 km radius because
in a franchise system there will be another franchise location to service that area.Simply you have doomed yourself for paltry revenues if not failure.
Mr Sub,
I always thought Frustrated/Mike/Antonio would say the dumbest thing on this site but you manage to beat them. Congrats!!! Ever heard of McDonald's, Subway, Burger King?
To ADMIN: please remove stugotz, since she participates in hate speach not supportive facts for JH and Liberty but instead she attempts to denegrate others for telling the truth. This should be a website with welcome dialogue for and against a franchisor as opposed to hatred.
awwwww.... Mike, poor baby, are your feelings hurt?