H&R Block is one of North America’s most renowned tax preparation companies. As a result, many individuals and corporations have been interested in joining forces with H&R Block by becoming a franchisee.
If you are considering investing in an H&R Block Franchise, this article will provide you with all the information you need to make an informed decision.
We will cover the Franchise Fees, Profit Potential, Total Investment Required, Training & Support Provided, Restrictions & Requirements for Becoming a Franchisee, Renewal Options, and Return on Investment associated with franchising with H&R Block.
By the end of this article, you should understand what it takes to become an H&R Block Franchise owner and if you decide to move forward with this opportunity.
Therefore, let’s explore the world of H&R Block Franchising and what it offers for potential franchisees.
About H&R Block
H&R Block is operating a tax return preparation business. One out of every seven Americans has their taxes prepared by H&R blocks.
They have prepared more than 800 million tax returns worldwide. Their tax pros can handle the full spectrum of the tax situation.
They also provide consumer tax software, online tax preparation, and electronic filing from their website. The company, situated in Kansas City, also includes payroll and business consulting services.
History Of H&R Block
Since 1955, H&R Block has been helping people worldwide stay on top of their finances. Founded by brothers Henry and Richard Bloch in Kansas City, MO, the pair opened a small office to provide individual tax preparation services.
From its humble beginnings, H&R Block quickly grew into one of the leading tax consulting firms in the nation.
1972 – 2008
In 1972, H&R Block merged with CompuServe—a pioneering computer network that provided users access to online banking services. This move helped revolutionize how taxpayers filed their taxes as they could now easily upload their financial information electronically to be assessed by licensed accountants at any time of day or night.
In 1981, H&R Block launched a new financial services division, H&R Block Financial Advisors, which provides advice and guidance to individual taxpayers. This service quickly expanded to include more complex products such as retirement and estate planning.
In the early 2000s, H&R Block accelerated its expansion by acquiring several companies in the tax preparation industry.
In 2003, they purchased Tax Works, Inc., followed by Olde Financial Corporation in 2006 and CompuTax Software Solutions in 2007.
By 2008, H&R Block had become one of the world’s largest tax preparation firms with locations across North America and Europe.
Today
Since then, H&R Block has continued to grow, offering various products, from standard filing services to full-service tax preparation, audit representation, and financial planning.
Today, H&R Block is a leader in the tax preparation industry and has become synonymous with providing quality services for individuals and businesses.
H&R Block Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $31,557-$157,898 |
| Franchise-Fee | $2,500 |
| Royalty-Fee | 6% |
| Area Requirement | N/A |
| Total Outlets | 12,000 retail offices |
Training Of H&R Block
The new Franchisor must attend the initial training programs held in Kansas City, Missouri, or a virtual option is also available as the Franchisor designates.
The initial training program consists of 35 hours and 16 hours of on-job training. In addition, they also offer training related to the preparation of tax returns.
All the employees and the Franchisor require taking annual training on H&R Block’s products and services.
What Are The Advantages Of Owning An H&R Block Franchise?
There are numerous advantages to owning an H&R Block franchise:
- Experience more than 55 years
- The United States Largest Tax Network
- Financing Options for Small Businesses
- Strong Support to Assist You in Growing Your Business
- Industry-leading training and technology
- Initial Investment Is Minimal
- Superior Services and Products
Term & Agreement Of H&R Block
The actual length of the initial franchise term is ten years. The term will start on the date when the Franchisor starts and ends on the 10th tax year.
There is no clause for the automatic renewal of the term, but the Franchisor can offer a new franchise.
Low-Cost Investment Franchise
H&R Block is a low-cost investment franchise. People may think that this no.1 tax business is an expensive franchise.
But in reality, the cost of H&R Block is low, and it is also profitable. The initial investment to start the Franchise is $31,557-$157,898 and a $2,500 franchise fee.
A one-time investment can open the highest profitable Franchise. Compared to other tax franchises, the H&R Block franchise has one of the lowest initial investments.
Moreover, you don’t need to pay any additional fee for advertisements because it has already gained goodwill in the market.
For those looking to open a franchise in the financial industry, possibilities include Liberty Tax Franchise, Allstate Franchise, and Ameriprise Financial.
H&R Block Comparison
| Company | H&R Block | Ameriprise Financial Services |
|---|---|---|
| Founded In | 1995 | 1894 |
| Initial Investment | $31,557-$157,898 | $10,432 to $114,480 |
| Franchise-Fee | $2,500 | $1,500 |
| Total Outlet | 12,000 | 4246 |
| Annual Revenue | $3.463 Billion | $11.9 Billion |
FAQ
Is H&R Block a home-based franchise?
No, H&R Block is not a home-based franchise. You will need a proper office to run Franchise.
Where is H&R Block headquartered?
H&R blocks headquarter is in Kansas City, Missouri.
Does H&R Block offer franchises?
Yes, H&R Block offers remunerative franchise opportunities to entrepreneurs.
How much does an H&R Block franchise cost?
The franchise fee for H&R Block is $2,500, and the total estimated investment cost is $31,557-$157,898.
Who is the Owner of H&R Block?
H&R Block is owned by Mars, Incorporated, a family-owned global business founded in 1911. The company first acquired H&R Block in 1998 and has since grown the brand into one of the largest tax preparation businesses in the world.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.