1851

LAST UPDATED: December 27, 2022FRANCHISE WEBSITE:&nbsp;<a href="https://www.hrblock.com/corporate/tax-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">https://www.hrblock.com/corporate/tax-franchise/</a>NUMBER OF LOCATIONS: 9,300+REPORTED COST TO GET IN:&nbsp;$31,557 – $157,898ESTIMATED ANNUAL PROFITS:&nbsp;$32,665 – $45,731<a href="https://www.hrblock.com/corporate/tax-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">H&amp;R Block</a> is one of the nation’s go-to tax preparation concepts, having assisted taxpayers in filing more than<a href="https://www.hrblock.com/corporate/our-company/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow"> 800 million returns</a> since its founding over 65 years ago. The company has significantly expanded over the decades, changing its development strategies but always remaining a steadfast force in the industry. Competitors of H&amp;R Block in the tax and financial franchise space include&nbsp;<a href="https://www.libertytaxfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Liberty Tax Service</a> and&nbsp;<a href="https://www.jacksonhewitt.com/own-a-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Jackson Hewitt Tax Service</a>.How Many H&amp;R Block Locations Are There?There are presently about 9,300 H&amp;R Block locations around the world, predominately in the United States, Canada and Puerto Rico. At the close of 2021, 6,601 locations were company-owned and 2, 752 were franchised units located in all 50 states.&nbsp;The number of locations has dropped in recent years, with VettedBiz data showing&nbsp;H&amp;R Block closed more than 700 units between its high of 10,106 locations in 2019 and the close of 2021. This accounts for more than 5% of the system.Part of the changes in footprint also had to do with the brand’s efforts to buy out small business owners and take on more company-owned stores. Over the last two years, H&amp;R Block has added over 220 corporate offices, offering great exit strategies to independent tax professionals.However, this shift in location numbers has not affected profits: H&amp;R Block has steadily grown sales lately. Company earnings were over $416 million in 2019, but&nbsp;that increased 53.73% to $640 million in two years.&nbsp;What is the H&amp;R Block Model?H&amp;R Block Tax Services LLC allows investors to own a tax return preparation business out of retail space under the corporate name. The company has offered a few different models of franchising in the past, from new spaces to acquiring a company-owned store or converting an independent office into an H&amp;R Block. All franchise agreements are for a 10-year term.New franchisees undergo extensive training procedures once they pick a business model, sign an agreement and pay the franchise fee. There are approximately 52 hours of combined classroom/online training and on-the-job instruction. The brand requires that owners be full-time operators that are present in the day-to-day.&nbsp;How Much Can H&amp;R Block Franchise Owners Make?The company&nbsp;<a href="https://www.franchimp.com/?page=pdf&amp%3Bf=103409_2019.pdf&utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">does not disclose earnings in its Franchise Disclosure Document</a> and therefore does not have a fleshed-out Item 19. However,&nbsp;VettedBiz estimates that the Average Unit Volume in 2021 was $130,661 per location; with a&nbsp;30% profit margin that will net franchise owners approximately $39,198 per year.&nbsp;Considering the investment range for an H&amp;R Block starts at just above $30,000, this means there’s a quick return on investment. Even with the midpoint investment of $94,727 or a high of $157,898, owners are getting that money back fairly fast.&nbsp;How Much Does it Cost to Open an H&amp;R Block?The total investment to open an H&amp;R Block location ranges from $31,557 – $157,898, depending on the model of the agreement involved. For operating businesses with build-out done, the cost is on the lower end. For new outlets, there are higher costs involved with the real estate phases.&nbsp;These listed costs are a part of the initial investment:<ul><li>Real property: $1,400 – $30,000</li><li>Leasehold improvements; construction costs: $0 – $50,000</li><li>Signage: $1,200 – $6,500</li><li>Furniture, Fixtures, Decor Items: $15,000 – $30,000</li><li>Suppliers Equipment: $8,000 – $12,000</li><li>Opening: $500 – $1,000</li><li>Pre-opening salaries, travel, and initial training: $1,500 – $3,000</li><li>Start-up suppliers: $500&nbsp;</li><li>Insurance: $477 – $798</li><li>Zoning Expenses:&nbsp; $0 – $500</li><li>Utility deposits: $50 – $300</li><li>Architect design: $0 – $4,500</li><li>Professional fees: $0 – $2,500</li><li>Additional Funds: $430 – $12,000</li><li>Business licenses: $0 – $1,800&nbsp;</li></ul><a href="https://www.franchisedirect.com/businessservicesfranchise/hr-block-franchise-07148/ufoc/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Ongoing Costs and Fees include:</a><ul><li>Royalty:&nbsp;60% of the first $5,000 of revenue received for services during each calendar year and 40% of the revenue received during each calendar year above $5,000. This percentage goes down for owners who make fast payments within a few days or those with increasing sales patterns. Revenue from business services has a royalty rate of 15%, and revenue from&nbsp;<a href="https://www.hrblock.com/tax-offices/extended-tax-services/past-taxes/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Second Look Review</a> fees is charged at a 20% rate. Select product sales are royalty-free.&nbsp;</li><li>POM Extended Service Plan and POM Protection Program:&nbsp;All franchisees have to provide the Peace of Mind® (POM) Extended Service Plan and take part in the POM Protection Program. POM unit sales have 20% royalty rates, with claims allowing a $50 deductible each.</li></ul>What is the Franchise Fee for H&amp;R Block?The franchise fee for H&amp;R Block is one of the lowest in the entire franchising industry. Entrepreneurs are able to partner with the trusted brand for a small fee of only $2,500. This is an upfront fee paid to the franchisor at the time of the agreement’s signing.&nbsp;Who is the Leadership of H&amp;R Block?<ul><li><a href="https://www.linkedin.com/in/jjonesii?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Jeffrey J. Jones - President and Chief Executive Officer</a></li><li><a href="https://www.linkedin.com/in/tony-bowen-cfa?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Tony Bowen - Chief Financial Officer</a></li><li><a href="https://www.linkedin.com/in/jill-cress-9958ab10?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Jill Cress - Chief Marketing and Experience Officer</a></li><li><a href="https://www.linkedin.com/in/jamilkhan2?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Jamil Khan - Chief Strategy &amp; Small Business Officer</a></li><li><a href="https://www.linkedin.com/in/alan-lowden-10871a?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Alan Lowden - Chief Information Officer</a></li><li><a href="https://www.linkedin.com/in/tiffany-monroe?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Tiffany Scalzitti Monroe - Chief People and Culture Officer</a></li><li><a href="https://www.linkedin.com/in/dara-redler?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Dara Redler - Chief Legal Officer</a></li></ul>What Helpful Articles Can I Read to Learn More About Teriyaki Madness?<ul><li><a href="https://www.entrepreneur.com/franchises/hrblock/330827?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Start a H&amp;R Block Franchise in 2022 - Entrepreneur</a></li><li><a href="https://mobile-cuisine.com/franchise/hr-block/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">How Much Does it Cost to Open an H&amp;R Block Franchise&nbsp;</a></li><li><a href="https://www.hrblock.com/corporate/tax-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">Selling Your Tax Business - H&amp;R Block</a></li><li><a href="https://impulsionfinance.com/how-much-money-does-a-hr-block-franchise-owner-make/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data-2721084" target="_blank" rel="nofollow">How Much Money Does a H&amp;R Block Franchise Owner Make?</a></li></ul> Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, 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 advice, nor does any information in the email 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.

Franchise Deep Dive: H&R Block's Franchise Costs, Fees, Profit and Data

1851 Franchise

One of the top tax preparation businesses in the country, this brand offers a lucrative return for offering the community necessary services. 

franchise-deep-dive-hr-blocks-franchise-costs-fees-profit-and-data

SweatHouz

SweatHouz SWTHZ Franchise - Hunter and Mallory Mitchem - Franchisee Feature - 1851 Franchise

From Aerospace to Wellness: Hunter Mitchem’s Journey to a SweatHouz Empire

sweathouz-franchise-hunter-mitchem-6g

Onigilly Japanese Kitchen

Onigilly - Low Operating Costs Drive High Returns for Franchisees - 1851 Franchise

Maximize Your ROI: How Onigilly’s Low Operating Costs Drive High Returns for Franchisees

onigilly-franchise-fast-casual-franchise-opportunity

Layne's Chicken Fingers

What Is the Layne’s Franchise Disclosure Document, and What Will I Find in It?

laynes-franchise-disclosure-document

Athletech News: How SWTHZ Delivers on Wellness Demands of All Kinds

swthz-delivers-wellness-demands-contrast-therapy

TruBlue Home Service Ally

Why Protected Territories Matter and How the TruBlue Franchise Delivers

why-protected-territories-matter-and-how-the-trublue-franchise-delivers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

Subway Franchisees Resist Expensive Remodel Directives

subway-franchisees-resist-expensive-remodel-directives

The American Franchise Act: What It Means for Franchisors and Franchisees - 1851 Franchise

The American Franchise Act: What It Means for Franchisors and Franchisees

american-franchise-act-joint-employer-standard

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

image of mellow mushroom deep dive into financials article from 1851 franchise

Mellow Mushroom Franchise Costs, Fees, Profit and Data for 2025

mellow-mushroom-franchise-deep-dive

How goGLOW Turned Clean Beauty Into a Scalable Franchise and Why It’s Accelerating Now

goglow-clean-beauty-tanning-franchise

How Capriotti’s Sandwich Shop Has Expanded Into One of the Restaurant Industry’s Most Exciting Franchise Opportunities

meet-the-franchisor-capriottis-david-bloom

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Top Enrichment and Supplemental Education Franchises for 2025

top-enrichment-supplemental-education-franchises

Top Early Childhood Education and Child Care Franchises for 2025 - 1851 Franchise

Top Early Childhood Education and Child Care Franchises for 2025

early-childhood-education-child-care-franchises

Top Arts and Creative Learning Franchises for 2025 - 1851 Franchise

Top Arts and Creative Learning Franchises for 2025

top-arts-creative-learning-franchises

1851 Franchisee Spotlight with photo of Mike Rippey and Sola Salons logo

How This Former Franchisor Is Using His Industry Experience To Help Beauty Pros Thrive With Sola Salons Franchise

mike-rippey-sola-salons-franchisee

Franchise Deep Dive: H&R Block's Franchise Costs, Fees, Profit and Data

MORE STORIES LIKE THIS