Franchise Failure Rates

SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026

H&R Block Franchise Failure Rate: 0.0% SBA Loan Defaults (2010–2019 Federal Data)

0.0%
charge-off rate on 41 SBA 7(a) loans to H&R Block franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — H&R Block against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: H&R Block 0.0%; Tax Preparation Services 9.7%; All franchises 10.2%H&R Block 0.0%; Tax Preparation Services 9.7%; All franchises 10.2%0%2%4%6%8%10%H&R Block0.0%Tax Preparation Services9.7%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: H&R Block 0.0%; Tax Preparation Services 9.7%; All franchises 10.2%H&R Block 0.0%; Tax Preparation Services 9.7%; All franchises 10.2%0%2%4%6%8%10%H&R Block0.0%Tax Preparation Services9.7%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

None of the 41 H&R Block SBA borrowers in the sample failed to repay — well below the Tax Preparation Services average of 9.7%.

Between 2010 and 2019, 41 H&R Block franchisees financed with SBA 7(a) loans. None defaulted — a 0.0% charge-off rate, against a Tax Preparation Services average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the H&R Block franchise failure rate on SBA loans?

H&R Block is a Tax Preparation Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to H&R Block franchisees: 41 loans approved between fiscal 2010 and 2019, of which 0 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.

How does H&R Block compare with other Tax Preparation Services franchises?

The table sets H&R Block's charge-off rate beside its Tax Preparation Services peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.

H&R Block versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureH&R BlockTax Preparation ServicesAll franchisesAll SBA borrowers
Default (charge-off) rate0.0%9.7%10.2%8.0%
Loans in sample41———
Defaults0———
Average loan size$377,668———
Charge-off rate by approval year — share of each fiscal year's H&R Block SBA 7(a) loans that later defaulted (FY2010–FY2019); years with fewer than 10 loans are outlined, not filled
Charge-off rate by approval year: FY2010 0% of 2 loans; FY2014 0% of 3 loans; FY2015 0% of 6 loans; FY2016 0% of 11 loans; FY2017 0% of 10 loans; FY2018 0% of 9 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2014 0% of 3 loans; FY2015 0% of 6 loans; FY2016 0% of 11 loans; FY2017 0% of 10 loans; FY2018 0% of 9 loans0%5%10%0%2010n=20%2014n=30%2015n=60%2016n=110%2017n=100%2018n=9
Charge-off rate by approval year: FY2010 0% of 2 loans; FY2014 0% of 3 loans; FY2015 0% of 6 loans; FY2016 0% of 11 loans; FY2017 0% of 10 loans; FY2018 0% of 9 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2014 0% of 3 loans; FY2015 0% of 6 loans; FY2016 0% of 11 loans; FY2017 0% of 10 loans; FY2018 0% of 9 loans0%5%10%0%’10n=20%’14n=30%’15n=60%’16n=110%’17n=100%’18n=9

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010200.0%
FY2014300.0%
FY2015600.0%
FY20161100.0%
FY20171000.0%
FY2018900.0%

How to read this

A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.

How reliable is this number?

H&R Block's figure rests on 41 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 41 resolved loans, one default moves the rate by about 2.4 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every H&R Block figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 41 resolved loans — directional, not precise.

Frequently asked

What is H&R Block's franchise failure rate on SBA loans?
Between 2010 and 2019, 41 H&R Block franchisees financed with SBA 7(a) loans. None defaulted — a 0.0% charge-off rate, against a Tax Preparation Services average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is H&R Block a safe franchise investment?
Between 2010–2019, H&R Block franchisees defaulted on SBA loans at 0.0% versus a 9.7% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). H&R Block franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 0.0% (0 of 41 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/h-and-r-block/ · Data & methodology · Download the dataset (CSV)