H&R BLOCK
H&R Block franchises enable operators to run tax preparation offices that primarily prepare federal, state, and local income tax returns during tax season, along with electronic filing and related financial products and services such as Refund Advances, Emerald Prepaid Mastercard, Spruce Accounts, and Peace of Mind guarantees. Franchisees may also offer optional services like bookkeeping, payroll, and small business accounting, as well as training courses for tax preparation. The business model relies on seasonal tax services targeting individual taxpayers and potentially small businesses, with competition from other tax preparers, software, and free government services.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
Tiered royalty (60% of first $5,000 annual revenue for Authorized Services, 40% thereafter; early payment discounts to 50%/30%) + $35 annual training fee per participant + product-specific royalties (e.g., 20% for POM, 15% for business services)
Franchise Stats
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
How H&R BLOCK Compares to Other Business Services Franchises
Key Insights
- Lower investment than 84% of Business Services franchises
- Top 10 largest franchise system in Business Services
- One of the lowest SBA loan default rates in Business Services
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
H&R BLOCK Current | $34K - $158K | $3K | 40.0% | 2,000 |
| Bimbo Foods Bakeries Distribution, LLC | $14K - $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K - $609K | $30K | 5.0% | 4,500 |
| JACKSON HEWITT TAX SERVICE | $71K - $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K - $21K | $11K | 3.0% | 2,655 |
| SERVPRO (UNIT) | $259K - $380K | $100K | 10.0% | 2,286 |
Business Services Average 187 franchises | $118K - $285K | $46K | 10.4% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 187 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+39 more states
SBA Loan History
Historical SBA 7(a) loan data for H&R BLOCK franchisees (2014 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
Unlock Franchisee Contact Database
2,227 franchisee contacts on file. Upgrade to see names, locations, phone numbers, and matched SBA loan data.
Upgrade to Pro$199/year · Cancel anytime
Due Diligence
Litigation (Item 3)
Termination of franchise agreements and takeover of franchise offices due to franchisees' failure to maintain a valid Electronic Filing Identification Number (EFIN).
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a H&R BLOCK franchise?
The total initial investment to open a H&R BLOCK franchise ranges from $33,824 to $158,344. This includes a franchise fee of $2,500. Ongoing royalty fees are 40.0% of gross sales.
How many H&R BLOCK franchise locations are there?
As of the 2024 FDD, H&R BLOCK has 2,000 franchise locations. The company has been franchising since 1957.
Can you get an SBA loan for a H&R BLOCK franchise?
Yes, SBA loans are available for H&R BLOCK franchises. Historical data shows 80 SBA 7(a) loans have been approved for H&R BLOCK franchisees, with an average loan amount of $390,766. The historical default rate is 0.0%.
Is H&R BLOCK a good franchise to buy?
H&R BLOCK shows several positive indicators: established brand with 2,000+ locations, low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in H&R BLOCK?
Talk to a franchise advisor to get personalized guidance and learn if H&R BLOCK is the right fit for you.
Talk to an Advisor