ITEMS 5–7 · FDD 2019
How much is a H&R Block franchise?
Per H&R Block's 2019 FDD, the initial franchise fee is $3K (Item 5) and the total initial investment runs $32K–$149K (Item 7); once open, you pay an ongoing royalty of 40.0% of gross sales (Item 6).
$3K
one-time, to buy in
40.0%
of gross sales, ongoing
$32K–$149K
franchisor's own estimate
The buy-in is the smaller number. The larger one is the drag: 40.0% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD, and this brand publishes no Item 19 earnings data to anchor it.
To open (Item 7)
$32K–$149K
all-in investment range
Franchise fee (Item 5)
$3K
upfront, one-time
Royalty (Item 6)
40%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$400K
40% of sales, before profit
Over a 10-yr term
$4M
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for H&R Block with an independent CPAH&R Block cost questions, answered from the filing
How much is a H&R Block franchise?
Per H&R Block's 2019 FDD, opening a franchise requires an initial franchise fee of $3K (Item 5) and a total initial investment of $32K–$149K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.
What royalty does H&R Block charge?
H&R Block charges an ongoing royalty of 40.0% of gross sales, per Item 6 of its 2019 FDD.
Does H&R Block tell you what franchisees earn?
No — H&R Block's 2019 FDD makes no Item 19 earnings claim, so any revenue figure you hear comes from sales conversations, not disclosure documents. Validate with current and former franchisees.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing H&R Block's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →