H&R Block vs Liberty Tax
H&R Block vs Liberty Tax: H&R Block costs $50K–$902K to open; Liberty Tax costs $42K–$79K. H&R Block has 127 units, Liberty Tax has 220. SBA loan history: H&R Block = 84 loans (0.0% default); Liberty Tax = 287 loans (9.4% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet, see the comparison below.
H&R Block vs Liberty Tax: Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Liberty Tax requires the lower minimum capital commitment ($42K vs $50K for H&R Block), a 17% spread. Initial franchise fees come in at $47K for H&R Block versus $40K for Liberty Tax, Liberty Tax has the lower entry fee. Ongoing royalty load is 12% for H&R Block and 14% for Liberty Tax, giving H&R Block the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Liberty Tax operates 220 units to H&R Block's 127. H&R Block has been operating 71 years (founded 1955) versus 29 for Liberty Tax (founded 1997), a 42-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Liberty Tax has the deeper SBA lending track record with 287 historical 7(a) approvals versus 84 for H&R Block. H&R Block's peak SBA year was 2017 (17 loans); Liberty Tax's peak was 2015 (26 loans). H&R Block's more recent peak generally indicates fresher lender appetite. Geographically, H&R Block concentrates in NE (7 SBA-funded units) while Liberty Tax leads in TX (32). Pick the brand whose strongest state matches yours for warmest lender introductions. Average SBA loan size on funded H&R Block deals is $391K vs $154K for Liberty Tax, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 0.0% for H&R Block and 9.4% for Liberty Tax, H&R Block has the cleaner historical loss profile by 9.4 points. PeerSense FPI scores come in at 57 (Moderate) for H&R Block and 60 (Moderate) for Liberty Tax, giving Liberty Tax the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 57/100 | 60/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 84 | 287 |
SBA Volume | – | – |
Default Rate | 0.0% | 9.4% |
Peer Tier | established | major |
Investment & Costs
Total Investment | $50K – $902K | $42K – $79K |
Franchise Fee | $47K | $40K |
Royalty Rate | 12% | 14% |
Ad Fund | N/A | 5% |
Liquid Capital | N/A | $50K |
Net Worth Required | N/A | $100K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 127 | 220 |
Franchised Units | 127 | 220 |
Company-Owned | – | – |
Term Length | 10 yrs | 5 yrs |
Brand Information
Year Founded | 1955 | 1997 |
Franchising Since | N/A | 1997 |
Years Franchising | N/A | 29 yrs |
Headquarters | FALLS CITY, NE | BROOKELAND, TX |
Category | Tax Preparation Services | Tax Preparation Services |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, H&R Block or Liberty Tax?
Lower upfront capital required
Liberty Tax
H&R Block: $50K starting · Liberty Tax: $42K starting
More SBA lender confidence
Liberty Tax
H&R Block: 84 SBA loans · Liberty Tax: 287 SBA loans
Lower historical default rate
H&R Block
H&R Block: 0.0% · Liberty Tax: 9.4%
Larger system & brand presence
Liberty Tax
H&R Block: 127 units · Liberty Tax: 220 units
Lower ongoing royalty load
H&R Block
H&R Block: 12% · Liberty Tax: 14%
More lender financing options
Liberty Tax
H&R Block: 49 unique lenders · Liberty Tax: 117 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
H&R Block vs Liberty Tax: Franchise Funding Comparison
Comparing H&R Block and Liberty Tax is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $42K to $902K.
Both brands have active SBA lending histories, H&R Block with 84 SBA loans and Liberty Tax with 287. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
H&R Block vs Liberty Tax, Frequently Asked Questions
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