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.
Franchise Costs
9% royalty + up to 2% ad fund + $3,700-$5,000/yr PAS license fee
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
Key Insights
- Higher than average SBA loan default rate in Business Services
| Franchise | Investment | 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 188 franchises | $118K – $284K | $46K | 10.4% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 188 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
166 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
166 Contacts Available
Unlock all PADGETT BUSINESS SERVICES franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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