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FranchiseVerdict

How Much Does a H&R Block Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$34K – $159K

Franchise Fee

$3K

Royalty

60.0%

Ad Fund

N/A

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for H&R Block is $3K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a H&R Block franchise requires a total investment of $34K – $159K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $430 to $12K.

Ongoing Costs

Beyond the initial investment, H&R Block franchisees pay ongoing fees. The royalty fee is 60.0% of gross sales (Percentage of Revenue).

Net Worth & Liquid Capital Requirements

H&R Block requires working capital of $430 – $12K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

H&R Block does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View H&R Block?

SBA Loans Issued

43

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. H&R Block has 43 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current H&R Block franchise owners

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