Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Franchise Costs: Detailed Estimates of Jackson Hewitt Franchise Costs (2016 FDD)

by Franchise Chatter on March 11, 2014

in Franchise Costs, Tax Preparation Franchise



Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List

This post was updated on March 13, 2017 to reflect information from Jackson Hewitt’s 2016 FDD (Item 7).

Detailed Estimates of Jackson Hewitt Franchise Costs Based on Item 7 (Estimated Initial Investment) of Jackson Hewitt’s 2016 Franchise Disclosure Document

For a Standard Office

  • The Franchise Agreement requires you to open and continuously operate from a single location. The chart estimates the initial investment for one standard office or one kiosk location. Developing a kiosk location (instead of a standard location) is typically only available in connection with an Affinity Account or National Account Location.
  • If you are converting an independent tax preparation business to the Jackson Hewitt system, your initial investment depends on a number of factors unknown to the franchisor, including the size, type, and number of offices you are converting. Accordingly, the franchisor is unable to estimate with any accuracy the initial investment of a conversion.

1.  Application Fee:  $500



  • This fee is non-refundable.

2.  Initial Franchise Fee:  $20,000 to $25,000

  • This fee is non-refundable.

3.  Travel/Living Expenses While Training:  $400 to $1,250

  • The franchisor estimates these expenses based on airfare, transportation to and from the airport to the hotel, three night stay near the corporate headquarters in Jersey City, New Jersey, or Sarasota, Florida, meals, and lodging in a single room to attend the New Franchisee Update/Systems Training, plus travel to attend local training programs nearest your area.
  • These expenses can vary considerably according to season, advance planning, and distance from the corporate headquarters.

4.  Lease Payments:  $4,200 to $15,000

  • The franchisor bases its estimate on a range of rental rates for approximately 800 square feet for three and one-half to four months in Newport News, Virginia and New York, New York, plus a security deposit of one month’s rent.
  • The estimate does not include rental costs associated with maintaining required minimum office hours during the off season.

5.  Leasehold Improvements:  $0 to $2,500

  • Leasehold improvements are based on condition of leased property meeting standards, and may vary due to the conditions of the property prior to leasing. Improvements may include installation of carpeting, painting of premises, and electrical wiring and installation.

6.  Equipment and Signs:  $26,000 to $31,000

  • The franchisor estimates the cost for equipment, computers, and signs based on purchasing these items from approved suppliers.
  • All estimates are based on an 800 square foot office with 4 tax preparer desks and a receptionist desk and includes computers, printers, paint, interior and exterior signage, marketing collateral, office supplies, furniture, partitions, and carpeting.

7.  Insurance:  $646 to $1,530



  • The estimate is the cost of annual premium for the required coverage as of January 2014, which may be required to be paid prior to commencing operations. Installment payment plans are generally available from insurance carriers.
  • The estimate does not include any additional coverage that may be required by a National Account, which coverage may vary and may be required prior to commencing operations.

8.  Telephone and Utilities:  $2,600 to $3,800

  • This estimate reflects anticipated telephone and utility costs, as well as telephone and utility deposits. Telephone and utility deposits may be refundable.

9.  Initial Advertising:  $5,000

  • This is the minimum amount of initial advertising you must spend under the Franchise Agreement.

10.  Additional Funds – 3 1/2 months:  $12,240 to $16,990

  • Other estimated expenses reflected in Additional Funds include certain estimated labor costs and employee travel, and other estimated costs for local technical support, broadband ISP, tax course advertising, tax course materials, office supplies, firewall software, and virus software.
  • For labor, the range includes the estimated cost of two tax return preparers with staggered schedules who work for the entire Tax Season for $8.50 per hour, and a third employee who works for one month during the peak part of the Tax Season, plus taxes on the wages.
  • For standard offices, the higher estimate includes a fourth employee who works approximately 20 hours a week and is responsible to set up and maintain the computers’ functionality.
  • For standard offices, it also includes a fifth employee who works approximately 15 hours a week completing routine bookkeeping tasks.
  • The estimates in this line item do not include any bonuses paid to employees. The franchisor does not include your labor (that is, what you may pay yourself) in this estimate.

11.  Miscellaneous:  $765 to $2,805

  • The estimate for miscellaneous expenses includes supplies, office interior signs, and window posters that are not otherwise included in the line items for signage, leasehold improvements, or equipment.

12.  Total:  $72,351 to $105,375

  • These figures are only estimates, and your costs may be higher, depending on your particular circumstances. Your initial investment will vary depending on the time of year that you open your Franchised Business.
  • The franchisor bases its estimates in the chart on opening the first day of Tax Season, but you may want to open sooner, in which case your costs are likely to be higher.
  • The information in Item 7 is based on the franchisor’s experience in operating company-owned locations and from information obtained from its franchisees.

For a Kiosk Location

  • The total estimated initial investment necessary to begin operation of a Jackson Hewitt Kiosk ranges from $44,721 to $64,175.

Franchise Matching Quiz



Franchise Matching Quiz

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: