H&R Block
H&R Block Tax Services LLC
Free for qualified buyers
Investment Range
$34,080 - $158,750
Franchise Fee
$2,500
Royalty
20%
Marketing Fee
—
Total Units
8,688
Median Revenue
—
AI Summary
H&R Block offers a franchise opportunity to operate a tax return preparation business, with potential to offer related services like bookkeeping, payroll, and training. The initial investment for a new single retail office ranges from $34,080 to $158,750, which includes a non-refundable initial franchise fee of $2,500. Franchisees pay a tiered royalty rate, starting at 60% on the first $5,000 of annual revenue and 40% on revenue exceeding $5,000, with incentives for early payment that can reduce these to 50% and 30% respectively. The system currently comprises 1,987 franchised units as of 2025, reflecting a declining trend from 2,561 units at the start of 2023. A notable risk for prospective franchisees is the lack of an exclusive territory, as H&R Block and its affiliates retain broad rights to operate other businesses, offer services online, and establish H&R Block locations outside your defined territory, potentially impacting your business without compensation.
Unit Growth
2023
8,921
2024
8,764
2025
8,688
Initial Investment Breakdown
| Category | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $2,500 | $2,500 |
| Real property (2) (Estimated cost total is for three (3) months) | $1,400 | $30,000 |
| Leasehold improvements; construction costs (3) | $0 | $50,000 |
| Signage (4) | $1,200 | $6,500 |
| Furniture and decor items (5) | $15,000 | $30,000 |
| + 11 more categories (apply to see all) | ||
| TOTAL INVESTMENT | $34,080 | $158,750 |
Financial Performance Data
Access detailed revenue metrics, expense breakdowns, and profitability data from the Item 19 Financial Performance Representation.
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Apply for Free AccessIs H&R Block a Good Investment?
Based on the FDD data, here are key factors to consider when evaluating a H&R Block franchise opportunity:
Potential Advantages
- •Established brand with 8,688+ locations nationwide
- •Lower initial investment compared to many franchise opportunities
Considerations
- •Declining unit count may indicate market challenges
- •Higher royalty fee of 20% compared to industry average
- •Litigation history disclosed in FDD (review Item 3 carefully)
- •No Item 19 Financial Performance Representation provided
Disclaimer: This analysis is based on publicly available FDD data and should not be considered financial advice. Always consult with a franchise attorney and accountant before making any investment decision.
Frequently Asked Questions About H&R Block
How much does a H&R Block franchise cost?
The total initial investment for a H&R Block franchise ranges from $34,080 to $158,750. This includes the franchise fee, equipment, inventory, real estate, and other startup costs as disclosed in the FDD.
What is the H&R Block franchise fee?
The initial franchise fee for H&R Block ranges from $2,500 to $2,500.
What are the ongoing fees for a H&R Block franchise?
H&R Block franchisees pay a 20% royalty fee and marketing fees on an ongoing basis.
How many H&R Block franchise locations are there?
H&R Block currently operates 8,688 franchise locations. This includes both franchised and company-owned units.
Quick Facts
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