H&R BLOCK Franchise Complaints
H&R Block tax franchise is experiencing turbulent times.
Yet despite undergoing a “broad strategic realignment,” that includes the elimination of hundreds of jobs and the closing of 200 underperforming company-owned offices, H&R Block continues to recruit new franchisees.
Are you familiar with the H&R Block franchise opportunity? What challenges do H&R Block franchisees face? Share an opinion below.
According to H&R Block franchise marketing, “no one knows the tax industry like we do, and no competitor can offer a better franchise opportunity.
“So you can rest assured that our long history with the franchise business model will work to your advantage.
“We’ll supply the tools you need to help you effectively beat the competition and to help you ensure your franchise’s success.
“There are many benefits to becoming an H&R Block franchisee.
Learn about the advantages of working with the No. 1 brand in tax preparation.
Over 55 Years of Experience
Largest Tax Network in the United States
Low Initial Investment
Available Business Financing
Strong Support to Help Expand Your Business
Unmatched Industry Training and Technology
Superior Products and Services
ALSO READ:
H&R BLOCK To Close 200 Company Locations, Cut 350 Jobs April 26, 2012
TAX FRANCHISES: Biggest Winners & Losers of 2010 January 12, 2011
H&R BLOCK Dumps EXPRESSTAX… & Franchisees? October 3, 2011
About H&R Block
H&R Block, Inc. has prepared more than 575 million tax returns worldwide since 1955, making it the country’s largest tax services provider. In fiscal 2011, H&R Block had annual revenues of nearly $3 billion and prepared more than 24.5 million tax returns worldwide, including Canada and Australia. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 100,000 professional tax preparers, and through H&R Block At Home(TM) digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.
SOURCE: H & R Block
ARE YOU FAMILIAR WITH THE H&R BLOCK AND THE H&R BLOCK FRANCHISE OPPORTUNITY? IS IT STILL A VIABLE H&R BLOCK FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
@guest2
#1. I live in Kentucky and I am a woman. It is worst than the comments posted about Liberty Tax. Liberty Tax is an absolute one-sided business investment to the benefit of the franchisor without any mercy to the franchisee. They have yet to provide a list to third parties and officials who have requested answers to how many franchisees have turned a profit over the years as requested.
#2. There are other businesses that make 100k to a million in profit each year for seasonal work. I would never tell you but in case you are ever hungry after losing your Liberty Tax stores I can suggest you to go to Florida. Ship blue spruce, scotch pine, douglas and frazier fir Christmas trees after renting a corner lot. Bring a camper and a water hose for a shower because people will steal off your lot if you do not stay on site. This is also a business you cannot be absentee owner of. Sell the trees for 100 to 300 dollars all day and night. Instead of sleeping, make door wreaths from the bottom trim of the trees and sell those for 50 to 200 dollars. They smell so good. You will make 100k plus in profit if you stay stocked and have enough people to help wrap and load the trees on customer’s cars that fill your parking lot at all hours. Be sure to get lights for the night under your extra large tent. Visibility is the only marketing you need for the demand of the area.
Other businesses that make much more are seasonal because of weather catastrophes such as contracting after a hurricane, hailstorm or tornado. Billions in the insurance no-fault claims restoration industry.
#3. I can understand why many are bitter and at John Hewitt and Liberty Tax Service. Everyone has their story and you will have your own. I am good at everything I do and the mirror looks beautiful for me. I usually kiss it, instead of John Hewitt’s ass these days.
-Trisha
@testaipra- Keep drinking the kool aide, the numbers Liberty posted were from the new franchisees (Hewitt calls them suckers) and their free returns. Even as free returns, Liberty does not show great promise with a 000.9% increase in number of returns. If I were Hewitt, I’d be thinking about that island in the carribean where the federal authorities can’t touch me. What a liar and crook!
Looks like Liberty Tax will be in about 1300 Walmart Stores which means they should have 6000 stores this year. Should they be in all Walmart stores in a couple of years should have about 9000 stores which will mean it is on pace to be larger than HR Block by 2020.
The walmarts will mainly help the company. It’s a good thing for the stockholders, but it won’t help the franchisee if the company does’nt start working on customer counts. We buy businesses to make a profit, and you can’t sell non-profitable stores.
Liberty is desperate to gain the type of clientele that it has been losing due to the disillusionment of its franchisees and its absolute need to rip off anyone from anywhere. Where else are you going to hunt down the so-called unsophisticated tax filer but in a place where they are likely to shop-Walmart!. I think this type of tax operation within the apparent endorsement of Walmart will lead to tarnishing Walmart’s image. i don’t think Walmart needs that kind of image right now.
The franchisee will only be a slave to Liberty within the confines of Walmart’s walls. Has this concept worked for HR Block? Why would Liberty consider this? Liberty wants to be able to steal from more people, franchisees and Walmart customers and show the shareholders that they are increasing market share by less than ethical methods.
What will Liberty come up with next? Liberty Lawyers? They certainly have plenty of them and this could keep them busy when they are not suing franchisees.
Part of the problem is with the laws that govern franchising. There is nothing in the disclosure paperwork that would tell a franchisee how many times a store has been sold.
I just finished a disclosure document for a company that includes payment of the remaining royalties if terminated. The franchise agreement if for 20 years. Even has an example calculation. Good grief!
I am starting to accept that the franchise agreements may mostly be unfair. Can be full of greed.
Did’nt know 7 eleven was a Japanese owned company. Should not matter if the agreements are reasonable, but they are not.
looks like the whole RICO case was nonsense. Got thrown out and it is done.
More like settled, not thrown out.
Should have been settled for tax due, interest and penalties in the first place. Greed took over.
It looks like to me that big spike in stock volume at the time of settlement indicates it was a huge huge settlement
Now the sec says they have to re state their revenue for 10, 11, and 12
Not so good recently
Add to that client growth of 15k on 500 new offices the shine is wearing off
That’s only 3 mil in tax prep offset by minimum royalties and about half mil in rent
Losing proposition for those new offices and quite a hole
Why do we keep changing CEOs every year and cutting stores? Why are they opening company stores right in my territory? Our company is a mess.
This franchise is a disaster. 30% royalties, corporate opening in my territory and absolutely a bunch of morons running the company. Stay away, there are many better options out there.
guest1 & funcul391 if you are so unhappy you should sell your territory. From the limited amount of sites available I’m sure you can find a buyer. After all H&R Block is a well established company who by far and away is the most recognized name in the industry, has a well trained staff who can handle returns for people of all economic levels. It’s closets two competitors use an outdated business model that focused on low income individuals who would by bank products and pay high fees to expedite their refunds. Neither of those companies have been able to penetrate the middle and upper class markets like H&R Block has. An example of this difference can be seen in H&R Block getting out of it’s agreements with Wal-Mart and Liberty increase their presents in those stores.
Bill,
Yes H&R Block has the name recognition but that work against us.
Last year our software screwed up 600k returns. That is not good publicity. Also, try selling a franchise that pays 30% of it’s revenues to the franchisor when the competition pays less than 20%. Even if you can get your stores up to $200k in revenues you are paying $60k to corporate office. You definetely pay for that name recognition.
Also over the last 8 years we have had about 5 new CEOs. who have each come up with their own terrible plan. Most have just cut the number of stores and cut expenses which has lowered revenues and number of returns. This company is a disaster. The only hope is that ObamaCare and immigration reform will bring in many new tax customers. This is a great industry but these CEOs have ruined it. I wish i was still in WalMart or Sears, i did 400 returns in WalMart, for $100k in revenues. Of course $30k went straight to corporate office.
The grass always seems greener on the other side of the fence. One of the competitors went into bankruptcy and the other one charges you 40,000 up front,
royalty & advertising is 19% and they do no advertising.
I guess it’s proof that either way you get what you work for. Then you have to decide if you can make it on your own. All of the top 3 have issues. Jackson Hewitt has dropped off the radar. They might ‘ve found out that it’s cheaper to keep people coming through retention and referrals. Block offered the 600M customers a $25.00 gift card.
Block has stopped advertising in my area. Not one ad for their tax classes . They’re all trying to save money and shift the responsibility to the franchisees.
No saving grace in Walmart, but its good to know somebody made money at it.
Looks like the grass is only going to be as green as you make it, especially this season.
I know a local mom and pop that converted to HR Block. After 2 years they got out and are back to being a independent. HR Block name is not an asset as they are known to be over priced and incompetent.
You an make more as a tax preparer than as an owner of an HR Block franchise. Not recommended, i am trying to sell but it is real hard.
@funcul2391 – That is the same as a Liberty franchisee. No money for the owner but everyone else gets paid and has a nice summer off. Good luck trying to sell. Liberty is not any better unless it is “preapproved”.
I’m an independent. Last year was our worst with the TaxWorks program not working correctly. We looked at and decided against Liberty. H&R is not well-regarded. These comments are interesting and probably representative – you reap what you sow.
[redacted]
Why did you decide against Liberty Tax? Fastest growing tax preparation company ever. Right on schedule to be Number #1 by 2020. Should have close to 5000 offices this tax season while HR Block continues to shrink.
Thanks for the info on TaxWorks. Don’t you think your customers will come back this year? After last season, my vote is for having a back-up plan. An independent can make the choice to use more than one software. It’s less expensive than having software cut your return count in half.
Block seems to only offer existing offices for sale. Do they have new franchisees?
Independent with support from other tax professionals. Best route.
Instant Tax Service is now completely shut down by the Justice Department. I bet some of these franchisees did’nt break the IRS rules.
Back-up plan. Best option with any franchise.
I have friends at Jackson Hewitt and Instant Tax who got completely screwed by their franchisor. HR Block continues to change plans every year and every CEO just reduces costs and this company loses market share. I would recommend Liberty Tax to anyone getting in. They keep adding stores and market share, have a stable management team, and still have a lot of good territories left. Also, their royalties are 19%, much lower than HR Block. Seems like there are a few that have done well that keep reposting on this site but overall they are a good company.
You guys should consider Liberty Tax Service. Taking market share every year while HR block and JH closing offices.
Make friends with a Liberty owner. Go lndependant. Build a well-trained group of tax preparers and managers. Work for yourself.
I guess that’s why entrepreneur magazines ranks block as the number 8 franchise opportunity of all franchises. Just 2 spots below McDonald’s. higher than KFC. Higher than Taco Bell.
Looks like the folks over at the liberty board have migrated here.
I’d be mad too. In 20 years liberty has managed to serve 10% of the numer of clients as block. Now they as in the next 8 they will be bigger?
So half as many offices but only 10% of the returns? How is that better opportunity.
And the person selling the block office….where are you located. I’ve been thinking of going block but can’t get anyone to sell in an area I’m interested in.
Also you may need some help….
The average block office does about 1600 returns
If you did 400 returns in Walmart (great by the way for Walmart. It is typically Walmart is a money loser)
If you grossed 100k on 400 returns and you were even half the average you wouldn’t be struggling to make it to 200k. If you were average you would be at 400k
Greg,
After 55 Years HR block is at number 8. After 15 years Liberty is all the way up to 28th. What is your point?
Also, where do you get your facts. Average Block is more like 1200 returns after 55 years in business. Liberty you ca do 800 after just 2-3 years and only pay 19%. You are a moron.
Also in 2010 Liberty was ranked 3rd overall, just behind McDonald and Subway. I don’t remember you losers saying anything good about them then. Now you want to throw out HR Block being ranked 8th. LOSER.
Ha ha
You guys are hilarious
And your wrong about the block numbers and your wrong about the liberty umbers
Per liberty press release they did “almost 2.3 million returns”
There are about 4500 offices
That makes an average of 511 yet urns per office
So your number is off by about 40%
It looks like some feathers are ruffled at thousands upon thousands of unhappy posts on the liberty board so you guys came over here.
That’s fine. There are very very few franchise complaints here. Only two pages and those mostly from you guys recently.
The discussion is good.
My folks own several block franchises
I’m independent.
I’m looking hard for block sellers but they are not easy to find.
I want part of the system.
In my area I’ve watched liberty come in 2 times and fold within 2 years.
I’ve watched block continue to succeed
Been there for 35 years and increases business almost every year.
Is it the fastest growing? Well if they do 1600 and go up to 1700 it’s plus 100 returns
If you do 500 and go up 100 returns you went up 20%
It’s all how you look at it.
It’s the same 100 returns.
The money growth is the same.
Ahhhhh forget it. The truth is if that “block” franchisee really wanted to sell it would go like hotcakes. People approach my folks cold on a regular basis.
And the real proof is in the pudding.
If you know what your doing you can get return numbers of exiled returns by efin….well it tells the real tale.
John
Got a question for you
For the fastest growing tax franchise how did they fall all the way to 28 and block went all the way to eight?
What happened?
That is an amazing drop for the fastest growing tax franchise in history huh?
I thought you had a reason to be pushing Block. Truth shows itself. Don’t think you can become a Block franchisee without buying a store from someone else. Do your research and go independent. Or if you buy a franchisee – don’t start from scratch and stick with one store.
Yea, I think they are a great company
I want to work with them
It’s not worth it for me to convert my independent business but to by an office with 1500-1600 existing returns and fold my independents in…..that’s what I want.
I heard all the same stuff from John when he started jackson Hewitt
Fastest growing blah blah. Gonna be bigger than block blah blah blah.
Then he “sold” Jackson Hewitt now the same line
Are there succesful liberty franchisees? Of course
But based on NUMBERS I don’t see the sure thing that a purchase of an existing block office that is 20-30 years mature looks like to me.
800 returns in 2-3 years isn’t realistic to me.
Liberty grew by 15k returns last year. It took 500 new offices to do it.
Block seems to have learned that closing un profitable offices (all company owned mind you) is a smart move
“Also in 2010 Liberty was ranked 3rd overall, just behind McDonald and Subway. I don’t remember you losers saying anything good about them then. Now you want to throw out HR Block being ranked 8th.”
Anyone who refers to Entrepreneur magazine rankings as if they are an indication of anything but how much they spend on advertising has a serious credibility problem.
Entrepreneur is a shameless seller of fake credibility to some of the most devious scams in the country. Look at all the high ranking janitorial franchises and the tool truck franchises which are the worst money pits in the industry. The rankings are meaningless.
Amen. But that means they all have roaches in the Holiday dressing.
Funny how John Hewitt touted that ranking when it was number 3
Now…..not so much.
If i could get out of my agreement with HR Block and switch to Liberty Tax and pay only 19% royalties instead of 30% I would sign on the dotted lines right away.
We get nothing from corporate paying them 30% except for bad commercials that confuse people. Free 1040ez during first peak? Totally idiotic marketing.
@affanapoli – Liberty has cash in flash and it is just a bad except you pay the people up front before you collect any money from them through usually a bank product. So if their refund is taken for any reason, you are out the tax prep fee plus the $50 or in some cases zees are giving away up to $100. So they basically pay people to file their taxes plus also give free tax returns as an added bonus.
Affanapolli
Now I know that you are not a block franchisee and all your posts suspect
Ill elaborate later but your post is in direct conflict with what most everyone in the industry knows.
Suffice to say….you know you are not a block franchisee
I could test you with some questions but we both know you would not be able to answer them.
Who is your FDM by the way?
Taked with the fac lately?
What’s your breakpoint this year?
We both know the truth
Greg,
I am totally confused with your questions? What do you mean I am not a franchisee? Why would I post on here? Your comments are strange.
You post on here because liberty sucks.
Affanopoli,
Of course they are strange
If you were a block franchisee they would not seem strange at all
A few simple questions could verify
What region are you located in?
How many numbers are there in your office id?
What is the name of the personnel administrative software for employees?
What is the FAC?
Greg way to go. Those liberty zees are pathetic. They have to post comments on blocks side to try to fool readers to think block is not good to their franchisees. Obviously hewitt is a poor leader.
You guys love HR Block so much go buy one of their offices and leave the Liberty system. Nobody wants you anyways.
I am a franchisee and I am pretty happy with HR Block overall. I work hard for a few months and then relax the rest of the year.
I must admit 30% of my revenues go to corporate and that is a lot of money but I am still happy. My office does $250k in revenues. I walk away with about $90k in profit. I never wanted to expand as I enjoy my life after tax season and don’t need the headache of a second office.
However, our company is a mess right now, with new management coming and going making short term decisions of just cutting. Our cockiness got us kicked out of Sears and WalMart. Free 1040EZ was a bad idea and thank god we stopped earlier last year. Corporate stores are a mess, with a lot of turnover recently because of pay cuts for tax preparers.
Do you think your organization will miss being in Sears and Walmart? I would think those are low fee returns and you still have to pay preparers and rent.
I think Jackson Hewitt and Liberty Tax were happy HR block got out of both.
Can H&R Block Survive Against Intuit and Liberty Tax Service?
By Dan Caplinger
H&R Block (NYSE: HRB ) will release its quarterly report on Tuesday, and as you’d expect outside of tax season, the tax-preparation company will almost certainly post a sizable loss. But the bigger question investors want answered is whether H&R Block can meet the long-term threat of Intuit (NASDAQ: INTU ) and its TurboTax software on one end, as well as the live tax-preparation competition of JTH Holdings’ (NASDAQ: TAX ) and its Liberty Tax Service chain.
H&R Block has a long history of providing tax-preparation services, and it has recognized the need to go beyond live preparation to offer tax software of its own. Yet TurboTax remains the most popular tax software in the market by a wide margin, forcing H&R Block to try to use its bricks-and-mortar offices as weapons in its competitive fight. Yet now, JTH Holdings has entered the field, with its ownership of Liberty Tax Service and the leadership of John Hewitt, co-founder of Jackson Hewitt. Let’s take an early look at what’s been happening with H&R Block over the past quarter and what we’re likely to see in its report.
Can H&R Block earnings improve in the future?
Analysts have gotten slightly more optimistic about H&R Block earnings in the long-run, keeping October-quarter estimates steady but boosting full-year fiscal 2015 projections by $0.02 per share. The stock has climbed back toward the high end of its range for the year, rising 9% since early September.
Just as with this quarter’s results, H&R Block’s results for the July quarter were similarly weighed down by the fact that most of the company’s earnings come in the key April quarter. A loss of $0.40 per share was worse than investors had expected to see, though, raising concerns about controlling costs during the tax off-season.
Another concern comes from H&R Block’s efforts to sell off its banking-services division. The company had hoped to sell its banking division to Republic Bancorp in order to get out from under tighter regulation of banking-services companies. Yet Republic decided not to comply with one of the required conditions under the deal, forcing H&R Block to seek out other counterparties in an effort to cut costs and leave itself able to compete more nimbly against Intuit, Liberty, and others.
The wild card that H&R Block, Intuit, and Liberty all face at this point is the uncertainty surrounding the coming tax season in 2014. Last year, both Intuit and H&R Block were surprised by a relative lack of growth in return preparation, with Intuit saying that it saw a much smaller shift toward software from manual preparation than it had expected. Smaller competitors took away market share from Intuit, and H&R Block said that IRS returns fell about 1%, defying its own expectations of modest growth.
In the H&R Block earnings report, focus less on the actual backward-looking earnings and more on comments about the coming tax season. With the high-season for H&R Block earnings looming ever closer, the company needs to demonstrate that it has what it takes to keep Intuit and JTH Holdings at bay as it seeks to offer customers a way to deal with increasingly complex tax return needs.
Bad year for our company . We have lost 10% of all returns done last year. Management is bunch of dummies!!! I should have gone with Liberty Tax.