How much does it cost to open a franchise with H&R Block?

The franchisor's Item 7 table puts the total initial investment to open a franchise with H&R Block at $34,080 to $158,750, according to their Franchise Disclosure Document (FDD).

What is the Murk Score for H&R Block?

H&R Block has a Murk Score of 77/100 (OPAQUE, our band for scores 65 to 100). The Murk Score measures FDD transparency across 32 binary checks covering disclosure completeness, system trajectory, franchisor solvency, internal consistency, and litigation. A lower score indicates greater transparency.

How many H&R Block franchise locations are there?

H&R Block has 8,688 outlets in total, franchised and company-owned, with a net change of -76 in the last reported year, according to Item 20 of their FDD.

[ VERIFIED // FDD 2025 ]

H&R Block

Q: What is the royalty rate for H&R Block franchise?

The ongoing royalty is not a single percentage of sales. The FDD describes it as: Revenue share (not a conventional royalty): 60% of the first $5,000 of each year's gross revenue and 40% above it; prompt-payment discounts reduce to 50%/30%; 20% incentive rate after two tax seasons. Effective rate on a typical office is near 40%. Source: FDD Item 6.

Q: Does H&R Block have any franchise litigation?

According to Item 3 of their FDD: Litigation detected: 2 pending cases, 6 concluded, 1 franchisee-initiated, affiliate government order, affiliate class action, affiliate FTC involvement.

Report based on the 2025 FDD, issued September 30, 2025.2025 FDD · not the current year

For H&R Block, the 2025 FDD estimates a total initial investment of $34,080 to $158,750 (Item 7).

Verified: Oct 17, 2026

7 RED FLAGS DETECTED

0/100

MURK SCORE

FRANCHISE SONAR MURK SCORE: OPAQUE(our band for scores 65 to 100)

Does H&R Block Have Franchise Litigation?

Litigation detected: 2 pending cases, 6 concluded, 1 franchisee-initiated, affiliate government order, affiliate class action, affiliate FTC involvement.

[ FULL LITIGATION ANALYSIS LOCKED ]

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How Much Does a H&R Block Franchise Cost?

Royalty Rate	Initial Investment	Total Units	Net Growth (1Y)
Revenue share Revenue share (not a conventional royalty): 60% of the first $5,000 of each year's gross revenue and 40% above it; prompt-payment discounts reduce to 50%/30%; 20% incentive rate after two tax seasons. Effective rate on a typical office is near 40%.	$34K to $159K	8,688	-76

Royalty Rate

Initial Investment

Total Units

Net Growth (1Y)

Revenue share

Revenue share (not a conventional royalty): 60% of the first $5,000 of each year's gross revenue and 40% above it; prompt-payment discounts reduce to 50%/30%; 20% incentive rate after two tax seasons. Effective rate on a typical office is near 40%.

$34K to $159K

8,688

-76

Source: FDD Items 6, 7, 20

VERIFIED // CHECKED AGAINST THE FDD

[ RISK_ALERT ]

We found 7 red flags in H&R Block's FDD.

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This report covers the 2025 FDD (issued September 30, 2025).

A 2026 FDD may exist that we don't have yet.

We found 7 red flags in H&R Block's FDD.

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H&R Block

Does H&R Block Have Franchise Litigation?

How Much Does a H&R Block Franchise Cost?

We found 7 red flags in H&R Block's FDD.

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