Buying a Jackson Hewitt Tax Service franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 20 7(a) loans to buy an existing Jackson Hewitt Tax Service (classified mostly as Tax Preparation Services), totaling $26.6M. The median loan was $1,277,100, 98% higher than the $645,250 median for all SBA-financed acquisitions. 1 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Jackson Hewitt Tax Service resale loans landed between $608,700 and $1,607,500.
- Lender experience exists. HomeTrust Bank alone has financed 6 Jackson Hewitt Tax Service resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Jackson Hewitt Tax Service resale
The median SBA 7(a) loan for a Jackson Hewitt Tax Service resale was $1,277,100 across 20 loans (FY2018 to FY2026). HomeTrust Bank, Byline Bank and BankUnited, National Association have financed the most Jackson Hewitt Tax Service resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Jackson Hewitt Tax Service acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $2.8M | $662,500 | |
| FY2019 | 2 | $2.5M | $1,273,500 | |
| FY2020 | 7 | $9M | $1,414,200 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 4 | $2.6M | $516,550 | |
| FY2023 | 3 | $4.7M | $1,675,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $5M | $5,000,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Jackson Hewitt Tax Service acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Jackson Hewitt Tax Service resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | HomeTrust Bank | 6 | 30.0% | $9.1M | |
| 2 | Byline Bank | 5 | 25.0% | $7.5M | |
| 3 | BankUnited, National Association | 3 | 15.0% | $3.1M | |
| 4 | Salem Five Cents Savings Bank | 2 | 10.0% | $720K | |
| 5 | Old National Bank | 2 | 10.0% | $488K | |
| 6 | Pathward National Association | 1 | 5.0% | $5M | |
| 7 | Beacon Bank and Trust | 1 | 5.0% | $645K |
States where Jackson Hewitt Tax Service units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Carolina | 4 | 20.0% | $5.6M | |
| 2 | Virginia | 2 | 10.0% | $3.1M | |
| 3 | Georgia | 2 | 10.0% | $2M | |
| 4 | Mississippi | 2 | 10.0% | $1.2M | |
| 5 | Massachusetts | 2 | 10.0% | $720K | |
| 6 | Indiana | 2 | 10.0% | $488K | |
| 7 | Texas | 1 | 5.0% | $5M | |
| 8 | Arizona | 1 | 5.0% | $2.6M | |
| 9 | Alabama | 1 | 5.0% | $1.9M | |
| 10 | South Carolina | 1 | 5.0% | $1.7M |
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify Jackson Hewitt Tax Service
Lenders code each loan to a NAICS industry. For Jackson Hewitt Tax Service the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Tax Preparation Services | 18 | 90.0% | $25.9M | |
| 2 | Other Accounting Services | 2 | 10.0% | $720K |
Questions buyers ask
How much do buyers borrow to buy a Jackson Hewitt Tax Service franchise?
The median SBA 7(a) loan for a Jackson Hewitt Tax Service resale was $1,277,100 across 20 loans (FY2018 to FY2026). The middle half of loans ran from $608,700 to $1,607,500. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Jackson Hewitt Tax Service acquisitions?
HomeTrust Bank has made the most SBA acquisition loans for Jackson Hewitt Tax Service (6, 30% of the total). Byline Bank, BankUnited, National Association, Salem Five Cents Savings Bank follow.
What interest rate and term do Jackson Hewitt Tax Service acquisition loans carry?
The average initial rate at approval was 6.53% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Jackson Hewitt Tax Service resale riskier than other SBA-financed acquisitions?
Too few Jackson Hewitt Tax Service acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Jackson Hewitt Tax Service units being bought with SBA loans?
North Carolina (4), Virginia (2), Georgia (2), Mississippi (2), Massachusetts (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
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Related
- All Tax Preparation Services acquisitions
- North Carolina acquisitions
- Virginia acquisitions
- Georgia acquisitions
- HomeTrust Bank
- Byline Bank
- BankUnited, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Jackson Hewitt Tax Service" (franchise code S0894). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.