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

The franchisor's Item 7 table puts the total initial investment to open a H&R Block franchise 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 total franchise outlets, with a net growth of -76 units in the last reported year, according to their FDD, Item 20.

H&R Block FDD Analysis | Franchise Sonar

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.

[ KEY FINDING ]

H&R Block has a Murk Score of 77/100 (OPAQUE, our band for scores 65 to 100). The score adds up the weights of whichever of our 32 disclosure checks its FDD triggered.

Source: Murk Score Analysis

[ VERIFIED // FDD 2025 ]

H&R Block

Issuance Date: September 30, 2025·Verified: Sep 10, 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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We found 7 red flags in H&R Block's FDD.

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Essential Scan

$199

Items 19-21 financials

[ FREQUENTLY ASKED QUESTIONS ]

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Analyzed by Franchise Sonar Research Team

How is the Murk Score calculated? →

Franchise Sonar provides independent analysis of franchise disclosure documents (FDDs) filed with state regulators. This is for informational purposes only and is NOT investment advice. Data extracted using automated technology; verify all financial information directly in the official FDD before making decisions. Murk Score measures disclosure completeness, not franchise quality. H&R Block is a trademark of its respective owner. Franchise Sonar is not affiliated with, endorsed by, or associated with H&R Block.