Franchises · 2026 FDD · Wisconsin DFI filing 642436
H&R Block franchise cost, unit revenue and closures
Opening a H&R Block cost $35,780 to $161,050 in the 2026 FDD; the franchisor gives no unit revenue figure; 4.2% of franchised units closed over three years.
Franchisor: H&R Block Tax Services LLC. FDD issued 2026-09-30. Fiscal year end 2026-06-30. Figures re-found on the cited page 2026-11-03.
What a unit costs to open
single Franchised Business.
What a unit pays the franchisor
| Initial franchise fee | $2,500 | Item 5, p. 9 |
|---|---|---|
| Royalty | Royalty 60% of the first $5,000 of each calendar year's revenue from Authorized Services (50% if paid within four days of the reporting period) and 40% of revenue above $5,000 | Item 6, p. 9 |
| Advertising fund | no advertising fund contribution is listed among the Item 6 fees | Item 6, p. 9 |
lump sum on signing the Franchise License Agreement.
The 40% applies to revenue above $5,000 a year; the first $5,000 carries the higher rate.
What a unit sells
Item 19 is optional and is the franchisor's own representation. It is shown here as filed, with the franchisor's measure, sample and period, and nothing is estimated where it is missing.
No Item 19. H&R Block's 2026 FDD makes no financial performance representation (Item 19, p. 35). The revenue-to-investment ratio is undefined for this brand.
Revenue to investment
Undefined: no Item 19 representation.
How many units open and close
| Franchised units | 2024 | 2025 | 2026 |
|---|---|---|---|
| Start of year | 2,339 | 2,135 | 1,988 |
| Opened | 0 | 1 | 29 |
| Terminated | 11 | 9 | 20 |
| Not renewed | 6 | 1 | 3 |
| Reacquired by franchisor | 169 | 118 | 167 |
| Ceased, other reasons | 18 | 21 | 8 |
| End of year | 2,135 | 1,987 | 1,819 |
| Company-owned, end of year | 6,629 | 6,701 | 6,745 |
Item 20, Table 1 p. 36; Table 3 totals p. 43.
Closures are the franchisor's Item 20 counts of units terminated, not renewed, or ceased for other reasons, summed over 2024–2026 and divided by franchised units at the start of 2024. Units the franchisor reacquired are not closures. This is an Item 20 count, not a failure rate.
fiscal years ending June 30; Table 3 prints fiscal 2026 as 1,988 to 1,819 against Table 1's 1,987 to 1,816.
As filed: the fiscal 2026 row starts at 1,988, one more than the 1,987 the 2025 row ends with, and ends at 1,819 where Table 1 prints 1,816; each row sums on its own.
Source and method
Every figure above comes from the H&R Block Franchise Disclosure Document issued 2026-09-30, as filed with the Wisconsin Department of Financial Institutions (filing 642436, registry record). The PDF is the franchisor's and is not hosted here; the item and page beside each figure is where to check it. Item 7 and Item 20 tables were read cell by cell; Item 19 was read by hand; each Item 20 year was checked to sum (start + opened − exits = end) before it was recorded.
The franchisor runs most of the system itself (about 6,700 company-owned offices against about 1,800 franchised) and reacquired 454 franchised offices over the three fiscal years in the filing. Its fiscal year ends June 30, so the Item 20 tables run fiscal 2024 to 2026..
Informational only, not professional, legal or investment advice. Unitnomics computes from the filing and does not advise on, rank, or refer to any franchise. Last reviewed: November 2026.