Jackson Hewitt Tax Service vs The UPS Store: Which Is the Better Investment?

Based on FranchiseStack.ai's analysis of 192+ franchise FDD filings — side-by-side comparison of investment costs, fees, unit economics, and franchisee satisfaction. Updated 2026.

Retail & Services Real Data Not Investment Advice
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JH

Jackson Hewitt Tax Service

Retail & Services
$50K – $250K
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VS
TU

The UPS Store

Retail & Services
$178K – $403K
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At a Glance: Key Differences

Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.

Investment Cost
Jackson Hewitt Tax Service wins on investment range ($153K less) vs The UPS Store.
Fee Burden
The UPS Store wins on royalty rate (7.0% lower) vs Jackson Hewitt Tax Service.
Unit Count
Jackson Hewitt Tax Service wins on total units (200 more) vs The UPS Store.
Satisfaction
The UPS Store wins on franchisee satisfaction vs Jackson Hewitt Tax Service.

⚠️ Risk Assessment

Risk signals from FDD disclosures. Higher score = lower risk. Verify all figures in each franchise's current FDD before investing.

Jackson Hewitt Tax Service
4/10
Moderate Risk
The UPS Store
7/10
Lower Risk
Risk FactorJackson Hewitt Tax ServiceThe UPS Store
Failure RateN/A2%
Unit Turnover (Growth)-50%/yr+0.5%/yr
Total Fee Burden12.0%7.5%
Territory Protection✅ Exclusive✅ Exclusive

Detailed Analysis: Jackson Hewitt Tax Service vs The UPS Store

According to FranchiseStack.ai's franchise database of 192+ FDD-sourced opportunities, Jackson Hewitt Tax Service and The UPS Store are among the most-researched franchise comparisons. The choice comes down to your investment capacity, risk tolerance, and operational preferences. Both operate in the Retail & Services sector, which means they compete for similar customers and territory. Jackson Hewitt Tax Service has a larger footprint, which typically translates to stronger brand recognition but potentially more territorial saturation.

From a capital perspective, Jackson Hewitt Tax Service has a lower entry point. However, initial investment alone doesn't determine ROI — ongoing royalties, revenue potential, and failure rates all factor into long-term returns. The UPS Store charges a lower royalty rate, which means more of your gross revenue stays in your pocket.

Franchisee satisfaction is one of the strongest predictors of long-term success. The UPS Store leads with a 70/100 satisfaction score, indicating that existing owners are more positive about their decision. Before committing to either franchise, we recommend running both through our Financial Model tool to project personalized 5-year P&L scenarios. You should also review each franchise's complete Franchise Disclosure Document using our FDD Checker to understand litigation history, termination rates, and territory restrictions.

Investment & Fees

Metric Jackson Hewitt Tax Service The UPS Store
Min Investment $50K $178K
Max Investment $250K $403K
Franchise Fee $15K $30K
Royalty Rate 12.0% 5.0%
Ad Fund Rate N/A 2.5%

Unit Economics

Metric Jackson Hewitt Tax Service The UPS Store
Avg Unit Revenue $100K $550K
Avg Profit Margin N/A N/A

Scale & Growth

Metric Jackson Hewitt Tax Service The UPS Store
Total Units 5,800 5,600
Annual Growth -50.0% 0.5%
Failure Rate N/A 2.0%

Franchisee Performance

Metric Jackson Hewitt Tax Service The UPS Store
Franchisee Satisfaction 58/100 70/100

Track Record

Metric Jackson Hewitt Tax Service The UPS Store
Years in Business N/A 44
Years Franchising N/A 44

Financial Requirements

Metric Jackson Hewitt Tax Service The UPS Store
Min Net Worth Required N/A $150K
Liquid Capital Required N/A $75K

Operations

Metric Jackson Hewitt Tax Service The UPS Store
Avg Employees N/A 4
Training Weeks N/A 2

⚠️ Risk Indicators

Metric Jackson Hewitt Tax Service The UPS Store
Failure Rate N/A 2.0%
Annual Unit Growth -50.0% 0.5%
Units Opened Last Year N/A 100
Units Closed Last Year N/A N/A
Exclusive Territory ✅ Yes ✅ Yes

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Frequently Asked Questions

Is Jackson Hewitt Tax Service or The UPS Store a better franchise investment?

The answer depends on your goals, budget, and market. Jackson Hewitt Tax Service has 5,800 total units and a 58/100 franchisee satisfaction score. The UPS Store has 5,600 total units and a 70/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a Jackson Hewitt Tax Service franchise?

Based on data in our database, opening a Jackson Hewitt Tax Service franchise requires an initial investment of $50K – $250K. The franchise fee is $15K, with ongoing royalties of 12.0%. Always request the current FDD for exact figures.

How much does it cost to open a The UPS Store franchise?

Based on data in our database, opening a The UPS Store franchise requires an initial investment of $178K – $403K. The franchise fee is $30K, with ongoing royalties of 5.0%. Always request the current FDD for exact figures.

What is the royalty rate for Jackson Hewitt Tax Service vs The UPS Store?

Jackson Hewitt Tax Service's royalty rate is 12.0%. The UPS Store's royalty rate is 5.0%. That means Jackson Hewitt Tax Service has the lower ongoing royalty burden.

Which has more locations — Jackson Hewitt Tax Service or The UPS Store?

Jackson Hewitt Tax Service has 5,800 total units. The UPS Store has 5,600 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Jackson Hewitt Tax Service or The UPS Store semi-absentee friendly?

Jackson Hewitt Tax Service is typically run as a owner-operator model. The UPS Store is typically run as a owner-operator model. If passive income is your goal, semi-absentee models let you hire a manager to run day-to-day operations.

Data sourced from franchise disclosure documents and public records. Investment ranges, royalty rates, and unit counts change — always request current FDD before making investment decisions. Last updated March 2026.

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