H&R Block franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.19 ↗

Franchise fees and ongoing costs

Franchise fee

$2,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

Tiered % of revenue per calendar year: 60% of first $5,000 and 40% above $5,000 (reduced to 50% / 30% if paid within 4 days after the Reporting Period); 20% incentive rate on revenue above the prior 2-year average if paid within 4 days (after 2 full Tax Seasons); business services 15% (10% if paid early); Second Look 20%; POM 20%.

Marketing contribution

Not captured

Technology fee

Not captured

Other fees

POM Protection Program premium (did not exceed $15 per POM unit last Tax Season) plus 20% royalty on POM units; additional training $35 annual fee per participant; audit cost if understatement of at least 2%.

Working capital (FDD Item 7)

Additional funds (Item 7 note 15): $430 to $12,000, estimated to cover ongoing expenses such as payroll (excluding your own salary) and utilities for the 3-month start-up phase.

Fees sourceFDD p.17 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.19 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

No

Metric / basis

none

Reporting period

Not captured

Sample

Not captured

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.43 ↗

Unit growth: Item 20

Reporting year

FY2025 (year ended June 30, 2025)

Scope

franchised outlets

Starting outlets

2135

Year-end outlets

1987

Net change

-148

Derivation

ending minus starting outlets

Openings

1

Terminations

9

Non-renewals

1

Other closures

21

Reacquisitions

118

Transfers

26

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.44 ↗

SBA loan history

Loan activity

14 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$208,800

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

7 loans

Historical charge-off share

0.00%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 58

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does H&R Block franchise cost?

New outlet (single retail office): $34,080 to $158,750 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $2,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.19 ↗

Franchise fee sourceFDD · page not captured ↗

How much do H&R Block owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: none. Sample: Not captured. Period: Not captured.

Item 19 performance sourceFDD p.43 ↗

What's the SBA charge-off rate for H&R Block?

0.00%; numerator / denominator: 0 / 58. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $208,800; window: FY2023-FY2026 YTD through 2026-06-30; sample: 7 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗