When Americans need to do their taxes, many go to H&R Block, which has thousands of locations across the country. But some may have noticed that H&R Block’s retail presence is not as robust as it used to be, as the company has notably closed tons of physical locations in recent years.

According to a recently issued franchise disclosure document, H&R Block had 1,816 franchised physical outlets as of the end of June. That’s down from 2,135 at the end of June 2024—a net decline of 319 franchised physical storefronts over the past two years.

It has also seen a net gain of company-owned stores at the same time—116 over the past two fiscal years—although not enough to make up for the decline. Overall, H&R Block reported 8,561 outlets at the end of fiscal 2026, a net decline of 203 over the two-year period.

Why the reduction? H&R Block says it’s mostly due to a change in strategy, which includes bringing franchised locations back under the company-owned umbrella.

“Like many aspects of our business, our retail footprint continues to evolve as part of H&R Block’s broader transformation strategy,” a spokesperson tells Fast Company. “Recent changes in our franchise portfolio reflect a normal shift in ownership mix, that includes reacquiring a number of franchise locations and integrating them into our company-owned operations.”

As for what underlies the tweaked strategy, one potential reason is that more people are simply relying on online platforms (including H&R Block’s) to either do their taxes or utilize the company’s other services, which has led to less of a need for physical locations.

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