H & R Block vs Federal Direct Tax Services Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of H & R Block vs Federal Direct Tax Services including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

H & R Block Franchise
Federal Direct Tax Services Franchise
Investment $31,501 - $149,398$299 - $2,499
Franchise Fee $2,500N/A
Royalty Fee 30%-
Advertising Fee No Advertising Fees-
Year Founded 19552003
Year Franchised 19582003
Term Of Agreement --
Term Of Agreement --
Renewal Fee --

Business Experience Requirements

H & R Block Franchise
Federal Direct Tax Services Franchise
Experience --

Financing Options

H & R Block Franchise
Federal Direct Tax Services Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees -/--/-
Start-up Costs Yes/--/-
Equipment Yes/--/-
Inventory Yes/--/-
Receivables Yes/--/-
Payroll Yes/--/-

Training & Support

H & R Block Franchise
Federal Direct Tax Services Franchise
Training On-The-Job Training: Up to 300 hours Classroom Training: 36 hours Additional Training: Regional training, year-round; ongoing online training By Video Online
Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform Ongoing Support Advertising/Marketing Technical Support Online Support Phone Support
Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app -
Operations - - Business can be run from home. - Business can be run part-time. - Business can be added on to an existing business.

Expansion Plans

H & R Block Franchise
Federal Direct Tax Services Franchise
US Expansion YesYes
Canada Expansion --
International Expansion YesNo

Company Overviews

About H & R Block

H&R Block is one of the world's largest tax services providers. H&R Block has prepared more than 550 million tax returns worldwide since 1955 and they have more than 100,000 trained tax professionals . The company was founded in 1955 by Brothers Henry W. Bloch and Richard A. Bloch who then grew the business to become a brand and franchising icon. As well as providing in-person tax return preparation services, H&R Block also provides At Home online services and through desktop software products, and through other channels, the company also offers financial products to support its tax business through the H&R Block Bank. The bank offers traditional and alternative banking solutions to H&R Block tax clients and associates and serves customers online, via phone and at a branch location at H&R Block world headquarters in Kansas City, Montana. When you become an H&R Block franchisee, you have more than 55 years of experience standing behind you. In addition to pioneering the tax services industry, H&R Block was also one of the first companies in the nation to implement the concept of franchising. In other words, no one knows the tax industry like H&R Block, 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.


#306 in Franchise 500 for 2020.
#297 in Franchise 500 for 2021.

#86 on Franchise Rankings.com

About Federal Direct Tax Services


Federal Direct is committed to helping entrepreneurs start their own income tax businesses in the right direction and grow from there. Income tax partnership packages include IRS and banking compliance training and licensing. Whether starting an income tax business out of your home or adding tax preparation services to an existing business, Federal Direct’s tax office partnership packages offer you the competitive edge your company needs to succeed in the rapidly growing multi-billion dollar income tax preparation industry.

Since taking our expertise and experience nationwide; Federal Direct has grown significantly and partnered with over 1,100 tax offices in 47 states. Our objective is to partner with motivated individuals and firms that have a hunger for success and a willingness to put in the tax marketing
and training efforts necessary to develop their income tax business into a consistently growing profit center.
We feel that our tax business partnership packages represent one of the finest
and most profitable opportunities in the income tax preparation industry.