H&R Block

Source filing: WI · filed 2025-09-30

Item 5 — Initial franchise fee

$2,500 [p.17 · WI · 2025-09-30]

Item 6 — Recurring fees (royalty & advertising)

Royalty	60% of the first $5,000 of revenue received by the Franchised Business during each calendar year for Authorized Services (includes Required Services and Optional Services), less applicable sales taxes collected and remitted to appropriate taxing authorities, and less revenue from the sale of products or services subject to a Product-Specific Royalty Rate or incentive rates paid to Franchisee (50% if paid to us within 4 days after the end of the Reporting Period to which the royalty relates and no other amounts payable are overdue) and 40% on the revenue received during each calendar year in excess of $5,000 (30% if paid to us within 4 days after the end of the Reporting Period to which the royalty relates and no other amounts payable are overdue). However, revenue in any calendar year that is in excess of the average revenue of the Franchisee for the 2 previous calendar years is subject to a Royalty Fee of 20% if paid to us not later than 4 days after the end of the Reporting Period to which the royalty relates. You are not eligible for the 20% royalty rate (the “Incentive Royalty Rate”) [p.17 · WI · 2025-09-30]

Royalty

60% of the first $5,000 of revenue received by the Franchised Business during each calendar year for Authorized Services (includes Required Services and Optional Services), less applicable sales taxes collected and remitted to appropriate taxing authorities, and less revenue from the sale of products or services subject to a Product-Specific Royalty Rate or incentive rates paid to Franchisee (50% if paid to us within 4 days after the end of the Reporting Period to which the royalty relates and no other amounts payable are overdue) and 40% on the revenue received during each calendar year in excess of $5,000 (30% if paid to us within 4 days after the end of the Reporting Period to which the royalty relates and no other amounts payable are overdue). However, revenue in any calendar year that is in excess of the average revenue of the Franchisee for the 2 previous calendar years is subject to a Royalty Fee of 20% if paid to us not later than 4 days after the end of the Reporting Period to which the royalty relates. You are not eligible for the 20% royalty rate (the “Incentive Royalty Rate”) [p.17 · WI · 2025-09-30]

Full Item 6 schedule (including one-time and conditional fees) is in the FDD itself.

Item 7 — Estimated initial investment (total)

$34,080 [p.19 · WI · 2025-09-30] – $158,750 [p.19 · WI · 2025-09-30]

Base single-franchise offering as stated in the FDD's total row. Multi-unit or area-development formats are not broken out here.

Item 20 — Outlets

Franchised outlets at start of year	2,135 [p.44 · WI · 2025-09-30]
Franchised outlets at end of year	1,987 [p.44 · WI · 2025-09-30]
Net change in franchised outlets	-148 [p.44 · WI · 2025-09-30]
Transfers	26 [p.47 · WI · 2025-09-30]
Terminations	20 [p.50 · WI · 2025-09-30]
Non-renewals	2 [p.50 · WI · 2025-09-30]
Ceased operations (other)	49 [p.50 · WI · 2025-09-30]
Company-owned outlets at end of year	6,701 [p.44 · WI · 2025-09-30]

Item 19 — Financial performance representation

This filing does not include an Item 19 financial performance representation.

Extraction notes

Item 7 totals were extracted with model assistance and verified against the cited page.