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
McRefund is a product for McDonalds 400,000 employees.
$49 gets their returns done.
There is a web site McRefund.com and toll free 1-866-McRefund for fax support.
Mike-tard,
If you were promised a get-rich quick scam and actually believed it and are angry now, whose fault is that? Why don’t you grow up and take responsibility for your actions! I told you you should make a profit in year 3. If you expected to make a profit in year one, I really think you were just naive.
What is the story on the 300 office H & R Block is opening in the Walmart stores? I though JH had exclusive rights to Walmart.
Since they filed for bankruptcy that might have ended that agreement....
H&R is going to hit the season kicking and screaming. They have to get their profit up and bring in more customers. They already have some pre-season marketing in my area.
But I would say it's not being handled right.
No one is talking about Jackson Hewitt.
Maybe Walmart looked at Unhappy Franchisee and saw that it is near the top of complained about franchises. Even as bad a shape as JH is, they are not even close to the 900+ complaints about LT. Even the worst H&R marketing is a ton better than LT could ever hope for.
I'm sure Walmart could figure out that 95% of the complaints are Mike and F&D (same person). Don't give yourself too much credit.
Mike,
If you keep re-posting under different names as you have you will easily get to a 1000. Had you been putting your effort on doing 1000 returns, you may not be filing bankruptcy.....
Testaipira,
Not worth trying to prove a point to Mike and his different alias. He is will never get it.
I recently talked to a Jackson Hewitt franchisee that bought his practice back from JH and is opening up as a mom and pop. Business is down 50%.... He is now thinking of switching to Liberty Tax as they are up and coming and have 4000 offices. Growing fast!!!