PADGETT BUSINESS SERVICES
Padgett Business Services franchises provide tax, payroll compliance and reporting services, including preparation of financial statements for management use, income tax advice and preparation, payroll services, data processing, business counseling, and related services using proprietary forms, systems, procedures, and approved partners (the Padgett System). Franchisees operate from a single location in an assigned geographic territory, actively promoting these services without competing with Padgett. The target market consists primarily of small to medium-sized service and retail, owner-operated businesses with fewer than 20 employees.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
9% royalty + up to 2% ad fund + $3,700-$5,000/yr PAS license fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 122 franchisees submitted complete financial information for the fiscal year ending December 31, 2023.
* Weighted average gross revenue calculated from the cumulative totals table on page 3: ($40,762,533 + $9,717,234 + $6,768,845 + $1,201,224) / 122 total franchisees = $58,449,836 / 122 = $479,097.02. Weighted average adjusted profit calculated from the cumulative totals table on page 3: ($14,074,275 + $3,958,895 + $2,921,065 + $446,919) / 122 total franchisees = $21,401,153 / 122 = $175,419.29. This 'adjusted profit' is derived after eliminating depreciation, interest, and franchisees' own expenses, making it closely align with operating profit or EBITDA. Revenue top quartile calculated from the average revenue of the '$500,000 +' segment: $40,762,533 / 42 franchisees = $970,536.50. Revenue bottom quartile calculated from the average revenue of the '< $100,000' segment: $1,201,224 / 20 franchisees = $60,061.20. EBITDA margin percentage is taken from the 'Total % PROFIT' (36.6%) in the cumulative totals table on page 3, which represents the overall adjusted profit percentage.
Extracted Item 19 Section
How PADGETT BUSINESS SERVICES Compares to Other Business Services Franchises
Key Insights
- Higher than average SBA loan default rate in Business Services
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
PADGETT BUSINESS SERVICES Current | $101K - $101K | $60K | 9.0% | 166 |
| Bimbo Foods Bakeries Distribution, LLC | $14K - $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K - $609K | $30K | 5.0% | 4,500 |
| JACKSON HEWITT TAX SERVICE | $71K - $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K - $21K | $11K | 3.0% | 2,655 |
| SERVPRO (UNIT) | $259K - $380K | $100K | 10.0% | 2,286 |
Business Services Average 187 franchises | $118K - $285K | $46K | 10.4% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 187 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
+27 more states
SBA Loan History
Historical SBA 7(a) loan data for PADGETT BUSINESS SERVICES franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
Unlock Franchisee Contact Database
166 franchisee contacts on file. Upgrade to see names, locations, phone numbers, and matched SBA loan data.
Upgrade to Pro$199/year · Cancel anytime
Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a PADGETT BUSINESS SERVICES franchise?
The total initial investment to open a PADGETT BUSINESS SERVICES franchise ranges from $100,675 to $100,675. This includes a franchise fee of $59,700. Ongoing royalty fees are 9.0% of gross sales.
How much revenue does a PADGETT BUSINESS SERVICES franchise make?
According to the 2024 FDD, the average gross revenue for a PADGETT BUSINESS SERVICES franchise is $479,097.02.
How many PADGETT BUSINESS SERVICES franchise locations are there?
As of the 2024 FDD, PADGETT BUSINESS SERVICES has 166 franchise locations. The company has been franchising since 1988.
Can you get an SBA loan for a PADGETT BUSINESS SERVICES franchise?
Yes, SBA loans are available for PADGETT BUSINESS SERVICES franchises. Historical data shows 36 SBA 7(a) loans have been approved for PADGETT BUSINESS SERVICES franchisees, with an average loan amount of $308,567. The historical default rate is 0.0%.
Is PADGETT BUSINESS SERVICES a good franchise to buy?
PADGETT BUSINESS SERVICES shows several positive indicators: established brand with 166+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in PADGETT BUSINESS SERVICES?
Talk to a franchise advisor to get personalized guidance and learn if PADGETT BUSINESS SERVICES is the right fit for you.
Talk to an Advisor