H&R Block Teams with Wal-Mart. The Kansas City Business Journal reports that the new year will bring changes for H&R Block franchisees. Following some fairly contentious times for H&R Block and its franchisees (last year H&R Block franchisees instituted a class action -- as well as separate lawsuits -- against their franchisor and H&R Block won the right to allow hundreds of H&R Block franchise agreements to expire), H&R Block has entered into an alliance with Wal-Mart. In January, H&R Block will open 560 tax preparation kiosks in Wal-Mart stores across the country. In a statement on the partnership, H&R Block said that it's a chance to get its name before 138 million prospective customers every week. It's unclear whether H&R Block or its franchisees will operate the kiosks.
In other H&R Block news, H&R Block announced last week that the SEC has launched an investigation of tax preparation company. H&R Block provides a refund anticipation loan program where taxpayers receive their refund as a loan form a bank. The SEC investigation centers on disclosures about the refund anticipation loan program. In litigation regarding the program, allegations were made that H&R Block received kick-backs from the bank that gave loans for the program. The company would not comment on the investigation except to say that it was cooperating with the SEC.
Posted by franchiselawblog at December 23, 2003 10:04 AM