HRB to go Frachise route

[AZ-Tax]

http://kansascity.bizjournals.com/kansascity/stories/2009/08/31/daily35.html?ana=yfcpc

[Snaggletooth]

Small Operations

I have received 3-4 letters from HRB inviting me to explore the possibilities of becoming a franchise owner. I think many of us have received these letters.

I won't go into another long discourse about the superior effectiveness of small companies to serve their market better, adapt to change, and operate more profitably than the mega-corporations. I have written about this many times in the past. Not the least of which is how a small closely-held tax publication company can out-perform a huge conglomerate, even with seemingly infinitely less resources.

Congratulations to HRB for recognizing this. I'm sure this is not the only reason (and that mitigation of risk would be another factor). But they do have a long track record of how their stores operate and have experienced such results with owner-franchises that they have seen this is the better route for them.

[geekgirldany]

guess they won't be contacting me since I am about 6 miless away from one in any given direction. I believe there are 3 in my county.

[MLINDER42]

Hrb

I am looking at buying two locations one does 1350 returns the other does 700. They wannt to much for them at this point.I will advise if it goes thru.

[ChEAr$]

no distance invovled

guess they won't be contacting me since I am about 6 miless away from one in any given direction. I believe there are 3 in my county.

I think, danny, since my office is less than a mile from their local one,
and I have received their letter.

[ChEAr$]

Back to basics

http://kansascity.bizjournals.com/ka...html?ana=yfcpc

for HRB, then. As I recall, that was the way they got started way back in .. oh.. the 60's?
Then some time later, they started buying back from franchisees, but now they're coming
full circle to their original business model.

[Lion]

Selling when far away

They're selling franchises too far from a District Office to effectively manage from the District and ones with specific clientele better served by someone familiar with whatever the need might be, Spanish-speaking or an ethnic community from a country with a vastly different tax structure. Probably having trouble getting District Managers that want to drive more than 50 miles to check on that outlying store! They want people with a stake in their office. Used to be employees had a stake due to their stock options, but I think the stock rose enough for me to exercise my options only a couple of times in the 11 years I worked for Block. They should sell the Premium offices, too, since they treated us like orphans and didn't know what to do about our non-RAL clientele! Been away from all of that for three years.

[gkaiseril]

The original business started in 1946, became H&R Block in 1955.

http://www.hrblock.com/company/history/index.html

There have been franchises for over 20 years, probably from the start. And if a franchise is very and consistently profitable it is acquired by the corporation. The franchise operation is used to spread the risk of doing business to others and generate some income for the franchisor with minimal risk.

McDonalds still offers franchises and has company owned stores.

Unlike the company stores the franchise operator hires, pays, and teaches the location's staff and has a more autonomous control than the District Manager does.

[Zee]

I am looking at buying two locations one does 1350 returns the other does 700. They wannt to much for them at this point.I will advise if it goes thru.

Since it's doubtful any other readers here are considering the same purchase, would you mind sharing the purchase price being offered? I'm sure many readers here would be interested.

Of course, if you believe this is too personal of a question, I'll apologize in advance.

[Snaggletoof]

Growth Area

guess they won't be contacting me since I am about 6 miless away from one in any given direction. I believe there are 3 in my county.

If you don't get one it is because of where you practice. Your town is in an exploding growth area. I know your town quite well, from a sleepy logging town 35 years ago to today's influx of commuters from all over the country.

HRB will not want to give up this lucrative plum out of their operational division and turn it over to a franchise.

[geekgirldany]

That's very true. No longer rural around here.

[taxmom34]

I am looking at buying two locations one does 1350 returns the other does 700. They wannt to much for them at this point.I will advise if it goes thru.

in my 3rd year working for HRB to the year i retired, 12 years later, i did over 1000 returns myself. it seems these must be one or two person operation.