General

Industry

Professional Business Services

Category

Accounting

SBA Identifier

S0756

Year of Founding

2008

Fees

Marketing Fee

NA

Royalty Fee

VARIES

Franchise Fee

$2,500-$2,500

Investment Range

$32K-$158K

Location units

Total U.S. Locations

9476

U.S. Franchised Units

2886

U.S. Corporate Units

6590

Headquarters (City)

Kansas City

Other

Item 19 - Franchise Financials

No

Financing Availability

-

Started Offering Franchises

2008

Issuance of FDD Data

07/29/2021

What to know about H&R Block franchise?

As an H&R BLOCK® franchisee, you will operate a tax return preparation business and may have the right to offer related products and services, bookkeeping, payroll services, and training.

H&R Block is based in Kansas City, MO. Scroll down to learn more!

How much does a H&R Block franchise cost?

Are you wondering how much is a H&R Block franchise? Before starting a H&R Block franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a H&R Block franchise is $31,557 and can go all the way up to $157,898. Keep in mind, you should also allocate additional funds to live off of while the H&R Block business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 H&R Block franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a H&R Block business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your H&R Block franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare H&R Block. Hotels to the Accounting, Outdoor Professional Business Services industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2018 3391 105 50 3345
2019 3345 48 129 3136
2020 3136 23 61 2886

Additional Details

How much does a H&R Block franchise owner make?

H&R Block franchise earnings and revenue can vary significantly from one franchisee to another.
The H&R Block franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

H&R Block unfortunately does not disclose financials on how much H&R Block franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, H&R Block does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with H&R Block franchisees. Do note that H&R Block is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 H&R Block franchisees to understand how much money they are making from their H&R Block business.

You should also speak to former H&R Block franchisees to understand why they left the system. Did they sell their H&R Block at a profit? Were they forced to close their H&R Block franchise down because it kept losing money?

What is the H&R Block franchise fee?

Owning a H&R Block franchise requires a variable royalty fee and a variable marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the H&R Block Franchise Disclosure Document

Keep in mind, there is also an initial H&R Block franchise fee of $2,500 that is included in the initial investment amount of $31,557 to $157,898. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the H&R Block franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the H&R Block franchise fee of $2,500.

Visit the H&R Block metrics tab to explore the financials for this business, royalty and marketing fees compare to other Professional Business Services franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was H&R Block founded?

H&R Block started offering franchises in 2008. H&R Block was founded 14 years ago in 2008.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many H&R Block locations are in the U.S.?

As of 2021, there were 2886 locations across the U.S. There are also 6590 corporate locations. Most Professional Business Services franchises like H&R Block have more franchised locations than corporate locations.

How many H&R Block franchises opened over the past few years?

Over the prior 3 years we have data for, H&R Block has opened 176 outlets throughout the U.S. Visit the H&R Block metrics tab to explore how the openings compare to other Professional Business Services franchises.

How many H&R Block franchises closed over the past few years?

Over the prior 3 years we have data for, H&R Block has closed 240 outlets throughout the U.S

Visit the H&R Block metrics tab to explore how the openings compare to other Professional Business Services franchises.

Is H&R Block growing? Are they opening more locations than they are closing?

The net unit growth rate for H&R Block over the past 3 years is -15%. Over the last year we have data for, H&R Block had a net unit growth rate of -8%.

Without a comparison, this number doesn’t mean much. Compare how the H&R Block growth rate compares to 2,000+ other franchises and Industry franchises like H&R Block. More info in the H&R Block metrics tab.

Is H&R Block franchise eligible for an SBA Loan?

H&R Block is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

H&R Block franchise was assigned the SBA Franchise ID of S0756 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like H&R Block that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is H&R Block a franchise in the United States?

According to the SBA, H&R Block meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that H&R Block provides you with an FDD if you are in discussion to buy a H&R Block.

What is the H&R Block Franchise for Sale Rate?

The H&R Block systemwide health and franchisee satisfaction can be measured by the H&R Blockfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

H&R Block franchise for sale rate over the past 3 years is 8%. Over the last year we have data for, H&R Block had a franchise for sale rate of 10%.

Without a comparison, this number doesn’t mean much. Compare how the H&R Block franchise for sale rate compares to 2,000+ other franchises and Industry franchises like H&R Block. More info in the H&R Block metrics tab.

What is the H&R Block Franchise Failure Rate?

H&R Block franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

H&R Block failure rate over the past 3 years is 8%. Over the last year we have data for, H&R Block had a franchise failure rate of 2%.

Without a comparison, this number doesn’t mean much. Compare how the H&R Block franchise for sale rate compares to 2,000+ other franchises and Industry franchises like H&R Block. More info in the H&R Block metrics tab.

How can I find out more details on H&R Block franchise?

Visit the H&R Block metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

H&R Block

$94,728

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

H&R Block

VARIES

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

H&R Block

$2,500

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Professional Business Services

Category

Accounting

SBA Identifier

S0756

Year of Founding

2008

Fees

Marketing Fee

NA

Royalty Fee

VARIES

Franchise Fee

$2,500-$2,500

Investment Range

$32K-$158K

Location units

Total U.S. Locations

9476

U.S. Franchised Units

2886

U.S. Corporate Units

6590

Headquarters (City)

Kansas City

Other

Item 19 - Franchise Financials

No

Financing Availability

-

Started Offering Franchises

2008

Issuance of FDD Data

07/29/2021

Detailed Franchise metrics for H&R Block

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for H&R Block below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

H&R Block

-8%

-15%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

H&R Block

10%

8%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

H&R Block

2%

8%

Industry median

All franchises median

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Business details

Company Name

https://www.hrblock.com/

Business email

**********@******.com

Mailing address

One H&R Block Way

State headquarters

Missouri

Owner Name

H&R Block

Phone

+1 (000) 0********00

City

Kansas City

Zip code

64105
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