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- 2023 Franchise 500 Rank
#217 Ranked #201 last year
- Initial investment
$32K - $158K
- Units as of 2022
9,935 3% over 3 years
Here’s what you need to know if you’re interested in opening a H&R Block franchise.
Established in 1955 by brothers Henry and Richard Bloch, H&R Block is one of the most well-known tax preparation services nationwide. Since its inception, the company has prepared hundreds of millions of taxes. It has spread globally, serving Puerto Rico and other U.S. territories and military bases. H&R Block also has a strong presence in Canada, where it has over 500 franchises. In the U.S., H&R Block has over 2,000 franchises.
Guided by the same principle now as it was back then, H&R Block wants to help its clients and communities by providing excellent service.
Why You May Want to Start an H&R Block Franchise
The "Block" in H&R Block is no longer just a play on the founders' last name. It represents the blocks—the communities—the company is a part of. Launching "Make Every Block Count" H&R Block tries to help small businesses make the connections they need to thrive. They also might provide online tax preparation tools so everyone can benefit from H&R Block's services, even if a physical location isn't nearby.
To join the H&R Block team, you should make sure you are ready for an initial investment made up of a franchise fee and other startup costs. Additionally, you should prepare yourself for ongoing fees that will consist of royalty fees, among others.
What Might Make H&R Block Franchise a Good Choice?
As a franchisee, there are a few options available to you when it comes to taking on the H&R Block name. You can either buy or sell. However, the company usually emphasizes joining the franchise by selling your business.
H&R Block may be willing to buy out your existing tax preparation business for a competitive price. The company typically encourages you to stay on board until you're ready to retire. This may help you create long and short-term exit strategies for you and your business. As part of the purchase agreement, H&R Block may keep your employees; you may receive cash up front, experience a smooth, co-branding transition, and rest easy knowing you are in good hands.
If you start a franchise from the ground up, you may search for available franchise locations on their website. New franchisees might undergo about double the hours of corporate training that returning tax professionals receive. This may be one of many ways H&R Block continues to support its franchisees throughout their tenure. The company might also help you with marketing and SEO, security and safety, and lease negotiations, among others.
How to Start an H&R Block Franchise
Whether you're selling your existing tax agency or starting from scratch, the first step in starting your H&R Block franchise is to take a look at the competition in your location. How fragmented is the market? Do you feel like your area could benefit from an H&R Block?
During the process, a local developer may contact you to discuss your interest. You'll usually need to provide some basic information, including how many tax returns your company filed the year prior. With due diligence and a down payment, you may be able to join the family and become a part of H&R Block’s history of making positive changes in the community.
About H&R Block
- Franchising Since
- 1956 (67 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Asia, Australia/New Zealand, Canada
- # of Units
- 9,935 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a H&R Block franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $31,557 - $157,898
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- H&R Block offers in-house financing to cover the following: equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 16 hours
- Classroom Training
- 35 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like H&R Block? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where H&R Block landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where H&R Block ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to H&R Block.
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