Quick Verdict · who it fits
H&R Block fits owner-operators looking for an emerging financial services concept.
The numbers a buyer needs first — straight from the filing.
Franchise fee (Item 5)
$3K
Agreement term
10 yrs
Years in business
71+ yrs
Company-owned units
6,701
Item 3 litigation
None disclosed
Model H&R Block's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Free AI summary — the first read on the filing.
8,688
Total units open
1,987 franchised + 6,701 company-owned
1 franchised unit
Units opened last year
148 franchised units
Units closed last year
-148 franchised units
Net unit growth
What our analysis flagged across the 2026 filing.
4
Risks to review
3
Strengths identified
4
Questions to ask
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| H&R Block | None | $3K | — | — | — |
| SmallbizprosSimilar price | None | — | — | — | — |
| Ameriprise Financial ServicesBiggest system | Disclosed | $2K | $10K - $138K | 72–91% | 3,738 |
| Pronto Franchise, L.l.c.Top-rated in category | Disclosed | $30K | $45K - $115K | — | 29 |
Not sure H&R Block is the one?
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All 12 sections — financial analysis, legal risk, unit economics, and a personalized buyer verdict.
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Personalized
Free explainers to go deeper before you sign.
Brand Analysis
The 2025 FDD prices the initial franchise fee at $2,500, one of the lowest in our library, then sets the royalty at 30% to 60% of revenue. The franchised side of the system has shrunk by 574 offices in three years while the franchisor projects zero new ones.
Investment Guide
A franchise net worth requirement and a liquid capital requirement measure two very different things — and most rejected applicants fail the one they never checked. Here's how the math works at every investment tier.
Financial Analysis
Item 19 hands you an average revenue number and stops there. Here's the step-by-step way to haircut that top-line, layer in COGS, labor, occupancy, the fee stack, and debt service, and land on the profit you'd actually take home.
H&R Block requires a $2,500 initial franchise fee, per the most recent FDD on file.
H&R Block is franchised by H&R Block Tax Services LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
No. H&R Block does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Yes. H&R Block grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.
Per the FDD, H&R Block discloses an initial agreement term of 10 years, a transfer fee of $2,500. Review Items 10 and 17 for the full renewal and termination provisions.
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