FDD ITEM 20 · FISCAL 2017–2019
H&R Block Item 20: outlets, exits & growth
In its latest FDD Item 20 (fiscal 2019, from the 2019 FDD · 6+ years old), H&R Block reported 3,136 franchised outlets at year end. 129 of 3,345 franchised outlets open at the start of the year left the system (exit rate 3.9%, fiscal 2019), while 48 new outlets opened. Systemwide units moved -5.2% over 2017–2019.
| Status (FTC) | 2017 | 2018 | 2019 |
|---|---|---|---|
| Outlets at start | 10,192 | 10,046 | 10,106 |
| Opened | 61 | 105 | 48 |
| Transfers | 125 | 129 | 123 |
| Terminations | 11 | 18 | 20 |
| Non-renewals | 1 | 0 | 1 |
| Reacquired by franchisor | 172 | 101 | 128 |
| Ceased — other reasons | 64 | 32 | 108 |
| Outlets at end | 10,046 | 10,106 | 9,524 |
| Net change | -146 | +60 | -582 |
20 terminations + 1 non-renewals + 108 ceased (other) = 129 exits ÷ 3,345 at start = 3.9%
These are the three FTC Item 20 statuses in which a franchised outlet left the system — including voluntary non-renewals and outlets that ceased for other reasons, which can include sales or absorption into another franchise. Transfers (123) are resales, not exits; reacquisitions by the franchisor (128) are tracked separately. There is no official “failure rate”, and not every exit is a closure or a failure; Item 20 does not say why any outlet left. On a small starting base, a single exit moves this rate sharply.
| State | Franchised | Company-owned |
|---|---|---|
| TX | 211 | 558 |
| PA | 174 | 236 |
| CA | 142 | 716 |
| GA | 134 | 155 |
| NC | 125 | 173 |
| IL | 122 | 298 |
| MO | 121 | 165 |
| NY | 116 | 371 |
| OH | 110 | 261 |
| AR | 109 | 21 |
| MI | 96 | 205 |
| MN | 94 | 88 |
| WI | 92 | 84 |
| IN | 91 | 133 |
| SC | 86 | 59 |
| FL | 85 | 462 |
| KY | 82 | 105 |
| OK | 81 | 42 |
| TN | 78 | 182 |
| KS | 71 | 42 |
| IA | 67 | 67 |
| VA | 63 | 115 |
| AZ | 60 | 145 |
| NE | 55 | 24 |
| WA | 54 | 176 |
| AL | 50 | 129 |
| CO | 41 | 140 |
| WV | 41 | 82 |
| LA | 39 | 94 |
| MS | 39 | 42 |
| OR | 35 | 88 |
| ME | 32 | 21 |
| NJ | 31 | 149 |
| MD | 29 | 87 |
| NM | 25 | 29 |
| SD | 24 | 16 |
| MT | 23 | 26 |
| NH | 22 | 25 |
| ID | 21 | 28 |
| UT | 21 | 61 |
| WY | 21 | 0 |
| CT | 19 | 68 |
| NV | 19 | 67 |
| VT | 18 | 0 |
| ND | 17 | 0 |
| MA | 15 | 156 |
| PR | 11 | 44 |
| DE | 9 | 26 |
| RI | 5 | 21 |
| AK | 3 | 14 |
| DC | 2 | 54 |
| GU | 2 | 0 |
| HI | 2 | 38 |
| VI | 1 | 0 |
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