First DataFiserv
MandatoryPCI”) compliance per the PCI Data Security Standard (“DSS”) and to maintain records documenting your PCI DSS compliance. If you choose to accept credit card payments, you must use First Data as your p
From the filings
HQ-led decisions
H&R Block
Financial servicesH&R Block keeps tax-prep software entirely in-house: franchisees must use the System and software H&R Block provides at no charge, built to its "Block Tech Ready" hardware standard. The system spans 8,688 offices, 1,987 of them franchised, with franchised outlets down 6.9% year over year.
For software vendors selling into US franchise brands.
Live signals
Total units
8,688
1,987 franchised
Unit growth YoY
-6.932%
vs prior filing
AUV
—
Item 19, 2025
Royalty
20%
of gross sales
Ad fund
0%
national + local
Initial fee
—
per unit
Investment range
$34K–$159K
all-in, Item 7
Procurement
—
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
20%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
CloverFiserv
ized when these are not applicable Enhanced Cellular Failover Cradlepoint W1855 (Options) Payment Devices Model Description Full support: FD150 RP10 Pin Pad Required by First Data Clover Flex Clover M
Sage 50Sage
MEDWAY GROUP INC 112 VILSECK RD BLDG 419 FORT STEWART GA 31315 912-876-2224 JAMES FLOYD JR. 345 LINDQUIST RD, BLDG 71 FORT STEWART GA 31315 912-698-1675 BIBIANO LOPEZ JDMA INC 970 PEACHTREE INDUSTRIAL
VerifoneVerifone
el Description Full support: FD150 RP10 Pin Pad Required by First Data Clover Flex Clover Mini Fully supported by Verifone, fully integrated with BlockPay Online (does not support Verifone P400 royalt
Franchisor behaviours
What the franchisor requires
16 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 16 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 9
You give H&R Block unlimited remote access to your computer data, hardware, software, and any applicable network or related device to provide services or perform audits.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 9
H&R Block, either directly or through its affiliates or third parties, may offer for sale to Franchisee
Is there a franchisee advisory council, association or committee?
YesItem 20
The Franchisee Leadership Council (“Council”) was created and is sponsored by us to promote constructive communication between franchisees and us.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 9
H&R Block may modify the H&R Block System as it deems appropriate.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 9
Assign to H&R Block all rights to the telephone number(s) of the Franchised Business, any related telephone directory listings, all e-mail addresses, URLs, domain names, internet listings, internet accounts, and other business listings used by the Franchised Business (including, but not limited to, any authorized…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
In the interests of client privacy and data security, we will also require you to strictly adhere to our data encryption, Payment Card Industry (PCI) compliance, antivirus/malware detection, and data transmission security policies.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 9
H&R Block may, without prior notice: (a) inspect, audit, or examine the financial or business records of the Franchised Business, and (b) observe the operation of the Franchised Business during the Franchised Business’s operating hours.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 9
H&R Block may revise the Manual, and Franchisee will comply with the revised Manual and pay for any associated costs.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
All locations require our written approval before you may operate the Franchised Business from the location.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 12
You may not operate an internet website, sell services on the internet, or solicit the services you offer under the FLA on any internet website unless authorized by us in writing.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 9
H&R Block may designate products and services for use in or resale by the Franchised Business that Franchisee will purchase from H&R Block, its affiliates, or third parties designated by H&R Block.
Must equipment be purchased from designated or approved suppliers?
YesItem 9
In developing and operating the Franchised Business, Franchisee will use only the equipment, fixtures, furnishings, signs, supplies, computer systems, and other items that H&R Block has approved as meeting the specifications and standards of the H&R Block System for quality, design, appearance, function, and…
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 9
If you choose to accept credit card payments, you must use First Data as your payment card processor.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Upon notice from us, you must sign and deliver to us the documents we require to authorize us to debit your business checking account automatically for the royalty fee payments.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have independent access to information generated and stored in your Franchised Business’s computer system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 9
H&R Block reserves the right to charge a reasonable fee to Franchisee for any additional required or optional training and for the training of subsequent Principals.
The filing answers no to 2 questions
- Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
The vendor opportunity at H&R Block
H&R Block operates 8,688 tax-preparation offices, 1,987 of them franchised and 6,701 company-owned, with franchised outlets down 6.9% year over year. Item 19 makes no financial performance representation. The franchised base is concentrated among multi-unit operators: 737 of the system's 1,179 mapped operators run more than one office, spread across roughly 3,855 mapped locations led by Texas, Pennsylvania, California, Georgia and North Carolina.
Who controls software purchasing
H&R Block keeps its core software entirely in-house. The company makes available, at no charge, the System and software for computerized tax-return preparation and electronic filing, and franchisees are required to use it. Every office must operate within a secure computer and printer network dedicated to tax preparation and H&R Block-authorized products, built to H&R Block's "Block Tech Ready" (BTR) hardware standard, using standard computer hardware purchased from H&R Block's approved vendor and configured to its specifications. Use of H&R Block's Point of Sale and Financial Information Network (FIN) Systems is required for reporting. Curtis Campbell, President, Global Consumer Tax and Chief Product Officer, leads that side of the business.
Tech named in the FDD, and what is actually required
All office computers must run Windows 11 Enterprise on required HP models purchased through Coupa, connected through a Cradlepoint E3000 router with a Block-managed security subscription. Card-capture devices are limited to listed models: the FD150, RP10 Pin Pad, Clover Flex and Clover Mini, which the FDD marks as required by First Data, and the Verifone P400, integrated with BlockPay Online.
Procurement, renewals, and timing
Item 8 of the FDD sets the supplier rules for H&R Block franchisees; the filing below carries the full terms. The royalty is tiered: 60% of the first $5,000 of revenue each calendar year and 40% above that (50% and 30% if paid within four days), with a 20% incentive rate on revenue above the prior two-year average. H&R Block's franchise license agreement carries no automatic renewal: H&R Block may, at its option, offer a successor franchise under a new agreement that can carry materially different terms than the original.
How to read the H&R Block FDD
The embedded viewer below carries H&R Block's 2025 Franchise Disclosure Document in full, including the Item 11 technology language summarized above.
Talk to FranCloud for a ranked list of franchise systems like H&R Block where the technology mandate and multi-unit operator base line up with your product.
Questions vendors ask
H&R Block, answered from the filing
H&R Block's headquarters controls the core mandate directly: franchisees must use the System and tax-preparation software H&R Block provides, built to Block Tech Ready hardware standards. Curtis Campbell, President, Global Consumer Tax and Chief Product Officer, leads that side of the business.
H&R Block mandates its own System and tax-preparation software, provided at no charge, on Windows 11 Enterprise computers from required HP models purchased through Coupa, behind a Cradlepoint E3000 router. Card devices must be listed models, including the FD150, RP10 Pin Pad, Clover Flex and Clover Mini, which the FDD marks as required by First Data, and the Verifone P400.
8,688 total offices — 1,987 franchised and 6,701 company-owned — in the financial-services segment, with franchised outlets down 6.9% year over year.
Item 8 of the FDD sets the supplier rules for H&R Block franchisees; see the filing below for the full terms.
H&R Block's franchise agreement carries no automatic renewal; H&R Block may, at its option, offer a successor franchise under terms that can differ materially from the original. With franchised outlets down 6.9% year over year, a vendor's clearest opening is with the 737 multi-unit operators who run most of the franchised base.
The embedded PDF viewer below carries H&R Block's 2025 Franchise Disclosure Document.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment H&R Block files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
1,179 operators run 3,855 mapped locations. 737 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
2–9 units659
Single-unit442
10–24 units77
25+ units1
Top states by locations
| TX | 429 |
|---|---|
| PA | 210 |
| CA | 202 |
| GA | 186 |
| NC | 156 |
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Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.