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
John;
Actually revenue is good. Doing a lot more business and partnership tax returns, higher end tax returns, and very few EIC. Work 9-6 weekdays, did a few Saturday mornings during peak, and have gained some book keeping accounts to keep me through the after tax season. Hope you are doing well.
So did the Jackson Hewitt franchisee have to buy themselves out of the franchise agreement to go as a mom and pop? Did the ones that did not renew have a non-compete. How did they get around that?
Jackson Hewitt is doing great, they are advertising everywhere, just like Block-Radio, Billboards etc. Hey wait, I saw a coupon for Liberty at a gas station last week for a free return. AWESOME!
Wow, so bankruptcy means everything is great. Growing 15% and doing some free returns means they are doing bad.. I don't think you make it quite up to the second floor.
Wait till the freer apps come out.
Take your phone out, send the W2 and your REFUND is on it's way.
I am still up 78% compared to last year in my main office....
Hewitt-loves them free returns!!
Is anyone still buying franchises from this company? Are they still in business? Have not heard anything about them anymore
The Jackson Hewitt FDD which states that there were 5763 franchises in 2009, which dropped to 4846 by the end of 2011... a loss of 917. In 2011 almost 300 were terminated or didn't renew.
Company owned stores increased slightly from 1000 to 1110 during that time.
There were 178 franchises and 98 company stores projected to open for the 2012 tax season.
I miss Herb. He used to always have intelligent contributions to this site. Now we got Mike, Frustrated & Disturbed, Bill (all the same people as Taxnerd on yahoo) that add nothing. Whatever happened to Instant Tax and Roni Dutch?
Awww, I miss Herb too.....:( IDIOT!!