H&R Block Franchise FDD, Profits & Costs (2025)
H&R Block is one of the most recognized names in tax preparation and financial services. The brand was established in 1955 in Kansas City, Missouri, by brothers Henry W. Bloch and Richard Bloch, who had previously been offering bookkeeping and tax support through United Business Company. The corporate headquarters remains in Kansas City, at One H&R Block Way.
Franchising started in 1956 when the company opened its first independently operated office. From there, H&R Block rapidly expanded and now has thousands of locations nationwide, assisting millions of individuals and small businesses every year.
The franchise focuses on professional tax return preparation available both in-person and through online platforms. In addition, it provides payroll solutions, small business advisory services, and financial products such as prepaid debit cards and identity theft protection.
What makes H&R Block stand out is its hybrid approach that blends experienced tax professionals with innovative digital tools. This model delivers convenience, accuracy, and peace of mind for clients navigating tax season.
Initial Investment
How much does it cost to start a H&R Block franchise? It costs on average between $32,000 – $158,000 to start a H&R Block franchised business.
This includes expenses related to office build-out, furnishings, technology systems, and initial working capital. The total investment will vary based on factors such as the size and location of the office, local market conditions, and whether the franchisee decides to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $2,500 |
| Real Property (3 months) | $1,400 – $30,000 |
| Leasehold Improvements / Construction Costs | $0 – $50,000 |
| Signage | $1,200 – $6,500 |
| Furniture and Decor Items | $15,000 – $30,000 |
| Equipment | $8,000 – $12,000 |
| Opening | $500 – $1,000 |
| Initial Training Expenses | $1,500 – $3,000 |
| Start-up Supplies | $500 |
| Insurance | $620 – $1,037 |
| Zoning Expenses | $0 – $500 |
| Utility Deposits | $50 – $300 |
| Architect Design | $0 – $4,500 |
| Professional Fees | $0 – $2,500 |
| Additional Funds | $430 – $12,000 |
| Business Licenses (if required) | $0 – $1,800 |
| TOTAL | $31,700 – $158,137 |
Download the Franchise Disclosure Document
Frequently Asked Questions
How many H&R Block locations are there?
As of the latest data, H&R Block operates about 9,000 retail locations in total across the United States. Out of these, approximately 2,135 locations are franchise-owned, while the rest are company-owned offices.
What is the total investment required to open a H&R Block franchise?
The total investment required to open a H&R Block franchise ranges from $32,000 to $158,000.
What are the ongoing fees for a H&R Block franchise?
&R Block franchisees are required to pay a 60% royalty on the first $5,000 of annual revenue from authorized services, with reduced royalty rates of 40%, 30%, or even 20% applied to revenue above that threshold.
In addition, franchisees must participate in the company’s Peace of Mind Protection Program, which carries a 20% product-specific royalty on each unit sold along with a premium fee that has historically not exceeded $15.
What are the financial requirements to become a H&R Block franchisee?
To become an H&R Block franchisee, candidates are required to have a minimum net worth of $100,000 and at least $50,000 in liquid capital. These financial requirements ensure that franchisees have the resources to cover startup costs, manage operating expenses, and sustain the business during its early stages.
Who owns H&R Block?
The H&R Block franchise is owned by H&R Block, Inc., a publicly traded company listed on the New York Stock Exchange under the ticker symbol HRB.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
