Quick Verdict · who it fits
H&R Block fits owner-operators looking for a mature financial services concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$34K - $159K
Franchise fee (Item 5)
$3K
Royalty (Item 6)
30–60%
System size (Item 20)
1,987 +1
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 2025 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.
Drag to your projected annual sales. Royalty 30–60% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (30–60%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
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 2025 filing.
4
Risks to review
3
Strengths identified
4
Questions to ask
How H&R Block ranks against 29 Financial Services peers we've analyzed.
Initial investment
24th pct · of 29 peers
Franchise fee
3rd pct · of 29 peers
System size
89th pct · of 29 peers
Financial Services industry averages
Avg investment
$58K - $182K
Avg franchise fee
$37K
Avg system size
450
Franchises analyzed
29
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| H&R Block | None | $3K | $34K - $159K | 30–60% | 1,987 |
| ParamountSimilar price | Disclosed | $40K | $74K - $166K | 10% | 91 |
| Ameriprise Financial ServicesBiggest system | Disclosed | $2K | $10K - $138K | 72–91% | 3,738 |
| Brightway InsuranceTop-rated in category | Disclosed | $25K | $43K - $187K | — | 351 |
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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 and a total initial investment range of $34,080–$158,750, 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.
Franchisees pay a royalty of 30.0% to 60.0% on gross sales as defined in Item 6 of the FDD.
As of their 2025 FDD, H&R Block has 1,987 total locations, with 1 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
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.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt