H R Block
H&R Block offers tax preparation services with the potential to expand into related financial services like bookkeeping and payroll. Known for comprehensive tax solutions, it operates in the financial services sector, specifically focusing on tax assistance and advisory services.
About H R Block
H&R Block, Inc., or H&R Block, is an American tax preparation company operating in Canada, the United States, and Australia. The company was founded in 1955 in Kansas City, Missouri, by brothers Henry W. Bloch and Richard Bloch.
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H R Block franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of an H&R Block franchise ranges from $34,080 to $158,750. This includes an initial franchise fee of $2,500 that must be paid to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $2,500 and it is fully earned by H&R Block upon execution of the Agreement. This fee is not refundable under any circumstances [p.17, p.19, p.194].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 15% for Services revenue if paid within 30 days, with an Early Payment Royalty Rate of 10%. Advertising costs are expensed as incurred without specifying a fixed fee. [p.194, p.28]
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. Regarding renewal, H&R Block may offer a successor franchise at their option upon expiration, but there's no obligation to do so, and the terms of any new agreement could be materially different, including potentially higher fees or changes to the franchise territory [p.193].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely transfer ownership of your franchise without good cause as determined by the franchisor. Good cause includes but is not limited to specific reasons, and the franchisor may have a right of first refusal to purchase the franchise instead [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.76]. Additionally, the franchisor can terminate the franchise agreement if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time, which cannot exceed 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify. It only mentions that there will be ongoing expenses during the start-up phase, estimated to cover three months, which may require additional working capital [p.21].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive Franchise Territory. You may face competition from other franchisees or H&R Block tax businesses that the company or its affiliates own and operate outside your designated area [p.36]. Additionally, there could be competition from other offices franchised by the company or its affiliates [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for new franchisees prior to their first Tax Season or immediately following it, which is facilitated quarterly. This includes an in-person session in Kansas City, MO, followed by virtual sessions. Additionally, H&R Block offers ongoing classes on tax preparation that franchisees and employees can attend for a fee. The franchisor also provides training and technical support during the term of the agreement but all expenses associated with attending training are borne by the franchisee [p.268].
How many franchised outlets are there, and how many have closed or been terminated?
There were 6 franchised or owned outlets in the United States, including territories and military bases, for fiscal years 2023, 2024, and 2025 as of the information provided [p.50]. Additionally, there is a list of names and last known home addresses and telephone numbers of franchisees who have ceased doing business or have not communicated within ten weeks on Exhibit E, but specific numbers are not given for terminated outlets [p.126].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.43]. However, if an existing outlet is being purchased, the franchisor may provide actual records of that specific outlet [p.43, p.219]. Additionally, no oral or written claims regarding the financial success of the franchise are made by H&R Block or its agents and employees [p.219].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering or selling only those products and services that H&R Block has expressly approved in writing [p.40]. You must use their specified sources to offer or sell the required products [p.22]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3].