H&R Block Franchise Opportunity

Overview

Join the H&R Block family as a franchisee and embark on a journey in the tax return preparation business. With an option to offer additional services like bookkeeping, payroll, and training, an H&R Block franchise provides a comprehensive business model in the financial services sector.

Investment Information

• Initial Investment Range: $31,557 to $157,898
  • Includes: $12,677 to $22,798 payable to the franchisor or affiliates
  • Initial Franchise Fee: $2,500 (non-refundable, uniformly charged)
• Note: Investment varies for existing office purchases

Business Model and Support

• Franchise License Agreement: Operate under H&R Block's proven system and proprietary marks in a defined territory
• Franchise Opportunities:
  1. New Retail Office: Open in a defined territory with training and support for office setup and operation.
  2. Purchase Company-Owned Retail Office: Buy an equipped office, with access to an existing client base and trained professionals.
  3. Operate in Retail Stores or Military Bases: Potential opportunities in various locations within the franchise territory.
  4. Assisted Acquisition Program: Financial assistance for purchasing independent tax return businesses (for qualified existing franchisees).
• Services Offered: Federal, state, local tax returns, electronic filing, and various optional services like H&R Block Emerald Advance Line of Credit®.

Fees and Royalties

• Royalty Fee Structure:
  • First $5,000 Revenue: 60% royalty, reduced to 50% if paid promptly
  • Revenue Above $5,000: 40% royalty, reduced to 30% if paid promptly
  • Incentive Royalty Rate: After 2 Tax Seasons, reduced rate of 20% for revenue exceeding the average of the past two years
  • Product-Specific Royalty Rates for certain services

Key Takeaways

• Diverse Franchise Opportunities: Flexibility in starting new or purchasing existing locations.
• Comprehensive Training and Support: Ensuring a smooth start and ongoing success.
• Robust Service Portfolio: Wide range of tax and financial services to offer clients.
• Structured Royalty System: Designed to support growth and reward prompt payment.

H&R Block offers a dynamic opportunity for entrepreneurs looking to enter the financial services industry with a trusted and recognized brand. Whether starting anew or taking over an existing operation, franchisees are backed by comprehensive support and a proven business model.