Jackson Hewitt Tax Service vs Liberty Tax
Jackson Hewitt Tax Service vs Liberty Tax: Jackson Hewitt Tax Service costs $25K–$364K to open; Liberty Tax costs $42K–$79K. Jackson Hewitt Tax Service has 158 units, Liberty Tax has 220. SBA loan history: Jackson Hewitt Tax Service = 195 loans (3.6% default); Liberty Tax = 287 loans (9.4% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet, see the comparison below.
Jackson Hewitt Tax Service vs Liberty Tax: Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Jackson Hewitt Tax Service requires the lower minimum capital commitment ($25K vs $42K for Liberty Tax), a 41% spread. Initial franchise fees come in at $25K for Jackson Hewitt Tax Service versus $40K for Liberty Tax, Jackson Hewitt Tax Service has the lower entry fee. Ongoing royalty load is 15% for Jackson Hewitt Tax Service and 14% for Liberty Tax, giving Liberty Tax the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Liberty Tax operates 220 units to Jackson Hewitt Tax Service's 158. Jackson Hewitt Tax Service has been operating 44 years (founded 1982) versus 29 for Liberty Tax (founded 1997), a 15-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Liberty Tax has the deeper SBA lending track record with 287 historical 7(a) approvals versus 195 for Jackson Hewitt Tax Service. Jackson Hewitt Tax Service's peak SBA year was 1996 (13 loans); Liberty Tax's peak was 2015 (26 loans). Liberty Tax's more recent peak generally indicates fresher lender appetite. Both systems concentrate the most SBA-funded units in TX. Borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Jackson Hewitt Tax Service deals is $343K vs $154K for Liberty Tax, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 3.6% for Jackson Hewitt Tax Service and 9.4% for Liberty Tax, Jackson Hewitt Tax Service has the cleaner historical loss profile by 5.8 points. PeerSense FPI scores come in at 60 (Moderate) for Jackson Hewitt Tax Service and 60 (Moderate) for Liberty Tax.
Health & Performance
FPI Score | 60/100 | 60/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 195 | 287 |
SBA Volume | – | – |
Default Rate | 3.6% | 9.4% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $25K – $364K | $42K – $79K |
Franchise Fee | $25K | $40K |
Royalty Rate | 15% | 14% |
Ad Fund | 6.5% | 5% |
Liquid Capital | $100K | $50K |
Net Worth Required | $500K | $100K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 158 | 220 |
Franchised Units | 158 | 220 |
Company-Owned | – | – |
Term Length | 10 yrs | 5 yrs |
Brand Information
Year Founded | 1982 | 1997 |
Franchising Since | N/A | 1997 |
Years Franchising | N/A | 29 yrs |
Headquarters | DALLAS, TX | BROOKELAND, TX |
Category | Tax Preparation Services | Tax Preparation Services |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, Jackson Hewitt Tax Service or Liberty Tax?
Lower upfront capital required
Jackson Hewitt Tax Service
Jackson Hewitt Tax Service: $25K starting · Liberty Tax: $42K starting
More SBA lender confidence
Liberty Tax
Jackson Hewitt Tax Service: 195 SBA loans · Liberty Tax: 287 SBA loans
Lower historical default rate
Jackson Hewitt Tax Service
Jackson Hewitt Tax Service: 3.6% · Liberty Tax: 9.4%
Larger system & brand presence
Liberty Tax
Jackson Hewitt Tax Service: 158 units · Liberty Tax: 220 units
Lower ongoing royalty load
Liberty Tax
Jackson Hewitt Tax Service: 15% · Liberty Tax: 14%
More lender financing options
Liberty Tax
Jackson Hewitt Tax Service: 86 unique lenders · Liberty Tax: 117 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Jackson Hewitt Tax Service vs Liberty Tax: Franchise Funding Comparison
Comparing Jackson Hewitt Tax Service and Liberty Tax is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $25K to $364K.
Both brands have active SBA lending histories, Jackson Hewitt Tax Service with 195 SBA loans and Liberty Tax with 287. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Jackson Hewitt Tax Service vs Liberty Tax, Frequently Asked Questions
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