If you're considering a career in tax preparation or thinking about running your own tax business, two popular options might catch your attention: franchising with H&R Block or joining the Incite Licensed Partner (ILP) program. Both paths provide the opportunity to serve clients under a recognized brand, but they differ significantly in structure, costs, earnings, and work-life balance. Here's a side-by-side comparison to help you decide which option aligns best with your goals.
Earnings Comparison: H&R Block Franchise vs. Incite Licensed Partner
H&R Block Franchise:
Franchise Owners: According to Glassdoor, franchisees earn between $97,000 and $180,000 annually, depending on the location and client base.
Employees: Accountants at H&R Block make an average of $75,000, with a range of $59,000 to $97,000.
Incite Licensed Partner:
ILPs report an average annual income of $225,000, with a range of $115,000 to $425,000, significantly higher than the average H&R Block franchise owner.
The program guarantees $23,000 take-home pay within the first 90 days, or participants receive their $5,000 program fee back.
Takeaway: Incite Licensed Partners have a higher earning potential compared to H&R Block franchisees and employees.
H&R Block:
Franchise owners and accountants typically follow the traditional tax firm model, which often requires 70-hour workweeks during tax season.
Incite Licensed Partner:
Incite prioritizes work-life balance, averaging 42-hour workweeks during tax season. This focus on manageable hours aligns with the firm’s mission to create harmony between work and life.
Takeaway: The ILP program provides a healthier work-life balance, especially during the busy season.
Costs and Training: Why ILP Might Be a Better Alternative to H&R Block
H&R Block Franchise:
Cost: Franchise buy-in ranges from $33,000 to $158,000, depending on location and size.
Training: Franchisees undergo 32 hours of classroom training and 19 hours of on-the-job training. Additional continuing education and training are available.
Incite Licensed Partner:
Cost: The ILP program requires a one-time fee of $5,000, which is far lower than H&R Block’s franchise costs.
Training: ILPs receive over 300 hours of initial training and weekly ongoing training, ensuring continuous professional development.
ILPs also work closely with a comprehensive tax support team, exchanging ideas and sharing valuable tax insights.
Takeaway: The ILP program is significantly more affordable and offers comprehensive training, making it a lower-risk, high-value option.
H&R Block:
Franchisees and employees benefit from the company's established brand, marketing, and support.
The traditional franchise model offers a clear path to owning a business but comes with the responsibility of managing operations, staffing, and overhead.
Incite Licensed Partner:
ILPs enjoy the benefits of business ownership without the operational headaches.
Incite handles client management, tax processing, and administrative work, allowing ILPs to focus on serving clients and growing their practice.
Weekly training and support help ILPs stay current with tax laws and industry best practices.
Takeaway: Incite Licensed Partners enjoy more freedom and less operational stress compared to H&R Block franchisees.
H&R Block:
Franchisees bear the financial risks associated with location performance, client retention, and operating expenses.
No guaranteed earnings.
Incite Licensed Partner:
ILPs financial risk is limited due to Incite providing the operational support and new sold clients.
Offers a money-back guarantee: if ILPs don’t take home at least $23,000 in the first 90 days, their $5,000 program fee is refunded.
Takeaway: The ILP program provides a safety net, reducing financial risk for participants.
H&R Block has experienced a decline in U.S. franchise locations, dropping from 4,329 in 2014 to 2,135 in 2024, according to Entrepreneur. Company-owned stores, however, have seen modest growth. This trend suggests a potential shift in the company’s business model that could impact franchisees.
In contrast, Incite is growing its Licensed Partner program by offering accountants a modern and flexible alternative to traditional firm ownership.
Both H&R Block and the Incite Licensed Partner program offer opportunities to thrive in the tax preparation industry, but they cater to different needs and goals.
Choose H&R Block if you want to join a well-known brand with a traditional franchise model and are comfortable managing the operational and financial responsibilities of owning a franchise.
Opt for the Incite Licensed Partner program if you want the freedom and financial benefits of business ownership without the headaches of managing operations. With higher earning potential, lower costs, guaranteed income, and better work-life balance, ILP is a modern solution for tax professionals seeking a rewarding career.
Ultimately, your decision will depend on your priorities—whether that’s maximizing income, maintaining work-life harmony, or leveraging a low-risk path to business ownership.
https://incitetax.com/licensed-partner/
