John Hewitt (entrepreneur): Difference between revisions
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{{Short description|American businessman (born 1949)}} |
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'''John T. Hewitt''' (born 1949 |
'''John T. Hewitt''' (born 1949) is an American businessman, the co-founder of [[Jackson Hewitt]], sole founder of [[Liberty Tax Service]] and now CEO of ATAX. As of late 2006, Hewitt served as [[CEO]], [[chairman of the board]] and president of the latter. Together these companies account for more than 10,000 tax preparation offices in the United States and Canada. In addition, John Hewitt was a pioneer in the development and use of specialized tax-preparation [[software]], which is now the industry's standard practice. |
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==Early |
==Early life and education== |
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Hewitt is a native of [[Detroit, Michigan]].<ref name="BufNewsHamburgHigh">{{cite web |last1=Epstein |first1=Jonathan D. |title=Meet Mr. Form 1040 Hamburg High grad founded both Jackson-Hewitt, Liberty Tax firms |url=https://buffalonews.com/news/meet-mr-form-1040-hamburg-high-grad-founded-both-jackson-hewitt-liberty-tax-firms/article_cbe88722-ff08-5a63-a3ae-cf823ed7c523.html |website=Buffalo News |access-date=June 24, 2022 |date=September 9, 2007 |archive-date=July 5, 2023 |archive-url=https://web.archive.org/web/20230705123050/https://buffalonews.com/news/meet-mr-form-1040-hamburg-high-grad-founded-both-jackson-hewitt-liberty-tax-firms/article_cbe88722-ff08-5a63-a3ae-cf823ed7c523.html |url-status=live }}</ref> His parents moved to [[Greece (town), New York|Greece, New York]] when he was four, and then to [[Hamburg, New York]] when he was 14. He graduated from [[Hamburg High School (Hamburg, New York)|Hamburg High School]] prior to enrolling at the [[University at Buffalo]].<ref name="BufNewsHamburgHigh"/> |
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==Career== |
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Hewitt began his career in 1969, while still a student at the [[University at Buffalo]], by attending a tax-preparation course offered by [[H&R Block]]. Finding the topic quite interesting, he subsequently obtained employment with that company as a tax preparer. By 1980 He was the youngest regional director at H&R Block running over 250 offices. |
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===Early career with H&R Block=== |
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Hewitt began his career in 1969, leaving the University of Buffalo early to become a tax preparer with [[H&R Block]].<ref name="BufNewsHamburgHigh"/> Hewitt quickly moved through the ranks of the organization, becoming an assistance district manager for Western New York and then a district manager for the areas of Elmira, Corning, and Ithaca.<ref name="BufNewsHamburgHigh"/> |
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By 1980, He was the youngest regional director at H&R Block running over 250 offices.<ref name=":0">{{Cite web |last=Iness |first=Carolina |date=2021-03-08 |title=Interview with John Hewitt, Franchise Pioneer |url=https://www.vettedbiz.com/interview-with-john-hewitt/ |access-date=2023-01-30 |website=Vetted Biz |language=en-US |archive-date=2023-01-30 |archive-url=https://web.archive.org/web/20230130171256/https://www.vettedbiz.com/interview-with-john-hewitt/ |url-status=live }}</ref> |
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| ⚫ | Hewitt perceived a need for technological innovation within the tax industry and he left H&R Block in order to pursue that opportunity. Working alongside his father, he pioneered the development of decision-tree tax-preparation software. However, H&R Block |
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| ⚫ | Hewitt perceived a need for technological innovation within the tax industry and he left H&R Block in order to pursue that opportunity. Working alongside his father, he pioneered the development of decision-tree tax-preparation software. However, H&R Block uninterested in the software, leading Hewitt to found a tax-preparation service that would exploit the efficiency of electronic tax preparation.<ref name=":0" /> |
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| ⚫ | In August 1982, in [[Hampton Roads, Virginia]] after Hewitt and other investors acquired the six offices of a local tax-preparation company, Mel Jackson Tax Service and launched the "Hewtax" interview program, the first of its kind in the industry, that had been developed with his father. In 1988, the company changed its name to Jackson Hewitt. By 1986, the [[IRS]] began testing an electronic filing process, allowing taxpayers to directly file their taxes, bypassing mailing of returns entirely, benefitting Jackson Hewitt and other providers of electronically produced tax forms. Also in 1986, Jackson Hewitt began offering [[franchising|franchises]] in the United States. |
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| ⚫ | By 1992 Jackson Hewitt was one of the fastest growing [[privately-held company|private companies]] in the United States |
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| ⚫ | According to [[Inc. Magazine]], By 1992, Jackson Hewitt had attained a second place ranking within its industry and was one of the fastest growing [[privately-held company|private companies]] in the United States. The company became public in 1994. When it was sold for $483 million in 1997, it was operating 1,345 offices. |
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Having left Jackson Hewitt at the time of its acquisition, John Hewitt was [[contract]]ually barred from competing with it until 2000 in most of the United States. However, he decided to launch a new company which would be the vehicle for yet further innovations, Liberty Tax Service. In order not to infringe the terms of the contract with the purchasers of Jackson Hewitt, the new company initially focused its operations in Canada. Liberty Tax Service was launched there when Hewitt purchased a Canadian tax company on September 1, 1997. |
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John Hewitt had left Jackson Hewitt at the time of its acquisition, and was [[contract]]ually barred from competing with the company until 2000 within most areas of the United States. In order to avoid infringing on the terms of his non-compete contract, Hewitt initially focused the company's operations in Canada, purchasing a Canadian tax company on September 1, 1997.<ref name=":1">{{Cite web |last=Rogers |first=Bruce |title=Entrepreneur John Hewitt Wants To Help You Compete To Win And End World Hunger |url=https://www.forbes.com/sites/brucerogers/2015/03/06/entrepreneur-john-hewitt-wants-to-help-you-compete-to-win-and-end-world-hunger/ |access-date=2023-01-30 |website=Forbes |language=en |archive-date=2023-01-30 |archive-url=https://web.archive.org/web/20230130171526/https://www.forbes.com/sites/brucerogers/2015/03/06/entrepreneur-john-hewitt-wants-to-help-you-compete-to-win-and-end-world-hunger/ |url-status=live }}</ref> |
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The new concern has achieved a huge measure of success; its more than 4,000 offices in North America as of 2012 make it the fastest-growing major tax-preparation company in history, and put it on pace to eventually equate or overtake its older competitors. Liberty Tax Service is best known for the costumed "wavers" dressed as the Statue of Liberty used in front of the offices across the country. |
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As of 2024 [[Liberty Tax]] operated 2,500+ offices in North America. Liberty Tax Service is best known for the costumed "wavers" dressed as the Statue of Liberty used in front of the offices across the country.<ref name=":1" /> During John's tenure at Liberty Tax Service, he wrote and published a book titled iCompete: How My Extraordinary Strategy for Winning Can Be Yours (copyright 2016). |
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Hewitt was terminated as CEO in September of 2017 after Liberty Tax reported poor financial performance and was forced to close down dozens of its offices due to tax fraud.<ref>{{Cite news|url=https://www.accountingtoday.com/news/liberty-tax-ousts-john-hewitt-as-chairman-and-ceo|title=Liberty Tax ousts John Hewitt as CEO|work=Accounting Today|access-date=2018-01-22|language=en}}</ref> A subsequent lawsuit has alleged that he had sex in his office and hired relatives of female employees with whom he’d had romantic relationships.<ref>{{Cite news|url=http://fortune.com/2017/12/13/liberty-tax-sex-scandal/|title=Liberty Tax Founder John Hewitt Faces Ouster Amid Sex Scandal Allegations|work=Fortune|access-date=2018-01-22|language=en}}</ref> |
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New York-based law firm of Skadden Arps Slate Meagher & Flom found Hewitt had romantic relationships with at least 10 female employees that created a hostile work environment at the company, according to the complaint. Hewitt caused Liberty officials to favor his romantic partners, according to the suit. In one case, he granted a girlfriend the right to buy a tax-prep franchise without a down payment. When she later decided to cash out of the business, he commanded executives to pay her seven times the franchise's value plus $220,000 in cash and stock, according to the suit. Hewitt was forced out as the CEO at Liberty Tax Service.<ref name=":5">{{Cite web |url=https://finance.yahoo.com/news/liberty-tax-founder-john-hewitt-191521900.html |title=Liberty Tax Founder John Hewitt Faces Ouster Amid Sex Scandal Allegations |date=13 December 2017 |access-date=12 February 2024 |archive-date=29 April 2024 |archive-url=https://web.archive.org/web/20240429003932/https://finance.yahoo.com/news/liberty-tax-founder-john-hewitt-191521900.html |url-status=live }}</ref> |
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===Loyalty Brands=== |
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John Hewitt founded Loyalty Brands in 2018. Loyalty Brands is an umbrella franchise company that manages twelve brands. The synergy between the brands allows franchisees to create a portfolio of several businesses that complement each other as a way to diversify and grow their entities. Currently, Loyalty Brands manages several operational and sales aspects for the brands, four wholly owned by Loyalty Brands, including ATAX Tax Service, Ledgers Accounting, Little Medical School, Zoomin Groomin Mobile Pet Spa and Loyalty Business Brokers. |
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==Honors and awards== |
==Honors and awards== |
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* Small Business Influencer Champion Small Business Trends and Smallbiztechnology.com (2011) <ref>{{cite web | url = http://www.libertytax.com/JOHN-HEWITT-IS-A-2011-SMALL-BUSINESS-INFLUENCER-CHAMPION.html | title = John Hewitt named Small Business Influencer Champion 2011 | author = Liberty Tax Service | |
* Small Business Influencer Champion Small Business Trends and Smallbiztechnology.com (2011) <ref>{{cite web | url = http://www.libertytax.com/JOHN-HEWITT-IS-A-2011-SMALL-BUSINESS-INFLUENCER-CHAMPION.html | title = John Hewitt named Small Business Influencer Champion 2011 | author = Liberty Tax Service | url-status = dead | archiveurl = https://web.archive.org/web/20120625121842/http://www.libertytax.com/JOHN-HEWITT-IS-A-2011-SMALL-BUSINESS-INFLUENCER-CHAMPION.html | archivedate = 2012-06-25 }}</ref> |
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*International Franchise Association Entrepreneur of the Year (2006) |
*International Franchise Association Entrepreneur of the Year (2006) |
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*[[Accounting Today]] Top 100 Most Influential People (2000–2012) |
*[[Accounting Today]] Top 100 Most Influential People (2000–2012) |
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Latest revision as of 08:30, 29 July 2024
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John T. Hewitt (born 1949) is an American businessman, the co-founder of Jackson Hewitt, sole founder of Liberty Tax Service and now CEO of ATAX. As of late 2006, Hewitt served as CEO, chairman of the board and president of the latter. Together these companies account for more than 10,000 tax preparation offices in the United States and Canada. In addition, John Hewitt was a pioneer in the development and use of specialized tax-preparation software, which is now the industry's standard practice.
Early life and education
[edit]Hewitt is a native of Detroit, Michigan.[1] His parents moved to Greece, New York when he was four, and then to Hamburg, New York when he was 14. He graduated from Hamburg High School prior to enrolling at the University at Buffalo.[1]
Career
[edit]Early career with H&R Block
[edit]Hewitt began his career in 1969, leaving the University of Buffalo early to become a tax preparer with H&R Block.[1] Hewitt quickly moved through the ranks of the organization, becoming an assistance district manager for Western New York and then a district manager for the areas of Elmira, Corning, and Ithaca.[1]
By 1980, He was the youngest regional director at H&R Block running over 250 offices.[2]
Hewitt perceived a need for technological innovation within the tax industry and he left H&R Block in order to pursue that opportunity. Working alongside his father, he pioneered the development of decision-tree tax-preparation software. However, H&R Block uninterested in the software, leading Hewitt to found a tax-preparation service that would exploit the efficiency of electronic tax preparation.[2]
Jackson Hewitt
[edit]In August 1982, in Hampton Roads, Virginia after Hewitt and other investors acquired the six offices of a local tax-preparation company, Mel Jackson Tax Service and launched the "Hewtax" interview program, the first of its kind in the industry, that had been developed with his father. In 1988, the company changed its name to Jackson Hewitt. By 1986, the IRS began testing an electronic filing process, allowing taxpayers to directly file their taxes, bypassing mailing of returns entirely, benefitting Jackson Hewitt and other providers of electronically produced tax forms. Also in 1986, Jackson Hewitt began offering franchises in the United States.
According to Inc. Magazine, By 1992, Jackson Hewitt had attained a second place ranking within its industry and was one of the fastest growing private companies in the United States. The company became public in 1994. When it was sold for $483 million in 1997, it was operating 1,345 offices.
Liberty Tax Service
[edit]John Hewitt had left Jackson Hewitt at the time of its acquisition, and was contractually barred from competing with the company until 2000 within most areas of the United States. In order to avoid infringing on the terms of his non-compete contract, Hewitt initially focused the company's operations in Canada, purchasing a Canadian tax company on September 1, 1997.[3]
As of 2024 Liberty Tax operated 2,500+ offices in North America. Liberty Tax Service is best known for the costumed "wavers" dressed as the Statue of Liberty used in front of the offices across the country.[3] During John's tenure at Liberty Tax Service, he wrote and published a book titled iCompete: How My Extraordinary Strategy for Winning Can Be Yours (copyright 2016).
New York-based law firm of Skadden Arps Slate Meagher & Flom found Hewitt had romantic relationships with at least 10 female employees that created a hostile work environment at the company, according to the complaint. Hewitt caused Liberty officials to favor his romantic partners, according to the suit. In one case, he granted a girlfriend the right to buy a tax-prep franchise without a down payment. When she later decided to cash out of the business, he commanded executives to pay her seven times the franchise's value plus $220,000 in cash and stock, according to the suit. Hewitt was forced out as the CEO at Liberty Tax Service.[4]
Loyalty Brands
[edit]John Hewitt founded Loyalty Brands in 2018. Loyalty Brands is an umbrella franchise company that manages twelve brands. The synergy between the brands allows franchisees to create a portfolio of several businesses that complement each other as a way to diversify and grow their entities. Currently, Loyalty Brands manages several operational and sales aspects for the brands, four wholly owned by Loyalty Brands, including ATAX Tax Service, Ledgers Accounting, Little Medical School, Zoomin Groomin Mobile Pet Spa and Loyalty Business Brokers.
Honors and awards
[edit]- Small Business Influencer Champion Small Business Trends and Smallbiztechnology.com (2011) [5]
- International Franchise Association Entrepreneur of the Year (2006)
- Accounting Today Top 100 Most Influential People (2000–2012)
- Ernst & Young Virginia Entrepreneur of the Year (2003)
Sources
[edit]References
[edit]- ^ a b c d Epstein, Jonathan D. (September 9, 2007). "Meet Mr. Form 1040 Hamburg High grad founded both Jackson-Hewitt, Liberty Tax firms". Buffalo News. Archived from the original on July 5, 2023. Retrieved June 24, 2022.
- ^ a b Iness, Carolina (2021-03-08). "Interview with John Hewitt, Franchise Pioneer". Vetted Biz. Archived from the original on 2023-01-30. Retrieved 2023-01-30.
- ^ a b Rogers, Bruce. "Entrepreneur John Hewitt Wants To Help You Compete To Win And End World Hunger". Forbes. Archived from the original on 2023-01-30. Retrieved 2023-01-30.
- ^ "Liberty Tax Founder John Hewitt Faces Ouster Amid Sex Scandal Allegations". 13 December 2017. Archived from the original on 29 April 2024. Retrieved 12 February 2024.
- ^ Liberty Tax Service. "John Hewitt named Small Business Influencer Champion 2011". Archived from the original on 2012-06-25.