H&R Block
Bottom line
- Total investment $34K – $159K including a $3K franchise fee, 60.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 61 loans (below the industry average).
- System contracting at -15.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one H&R Block unit return on the cash you put in?
Unlevered ROIC · per unit
-292%
Negative
Overview
About
H&R Block franchisees operate tax preparation and filing services, serving individual and small business clients during tax season and year-round. Franchisees manage client intake, tax return preparation (often using H&R Block's software systems), filing, and ancillary services like audit representation. Day-to-day operations include customer consultations, compliance with tax law and IRS requirements, software management, and staff training.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
H&R Block presents HIGH RISK due to system contraction, aggressive royalty structure, absent financial disclosures, active litigation, and unprotected territory—making ROI validation impossible and franchisee success uncertain.
Score breakdown · what drove the 64 / 100 rating
- 01MINORDeclining unit count (-6.9% YoY) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORExtremely high royalty structure (60% on first $5,000, then 40%) consumes majority of early-stage revenue, creating cash flow pressure
- 03MEDNo average revenue or net income disclosed in FDD Item 19, making ROI projections impossible and preventing informed investment decisions
- 04HIGHMultiple active litigation matters including FTC settlement, class actions on deceptive fees, and restrictive covenant disputes indicate compliance and reputational issues
- 05MINORUnprotected territory exposes franchisees to direct competition from other H&R Block franchisees and company-owned locations
- 06MINORDeclining system size suggests fewer operational references and reduced collective bargaining power for franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
H&R Block · FDD (2025) PDF