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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, and procedures. The business model is franchising these services to operators who target a broad spectrum of the general public, particularly small businesses, while marketing franchises to individuals with experience in tax, accounting, or general business. Prospective franchisees may qualify as conversions if they bring an existing book of business of at least $100,000 in revenue.
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Franchise Costs
9% royalty + up to 2% ad fund + $585-$614/mo PAS license fee
Financial Performance
Item 19 Financial Performance
Data Based On: 130 franchisees submitted complete financial information for fiscal year ending 12/31/2025, segmented by revenue tiers.
* Calculated average gross revenue as total revenue ($72,631,244) divided by total franchisees (130). Calculated median gross revenue as the average revenue of the segment containing the median franchisee ($9,266,812 / 23 units). Calculated revenue top quartile as the average revenue of the top revenue segment ($53,761,865 / 47 units). Calculated revenue bottom quartile as the average revenue of the bottom revenue segment ($1,058,182 / 16 units). Calculated average net profit as total adjusted profit ($18,721,573) divided by total franchisees (130). Estimated best_guess_profit_low by multiplying average gross revenue by the lowest Adjusted Profit Percent from any segment (-10.0% from $100,000 - $299,999 segment, corrected from (11.6)% in OCR). Estimated best_guess_profit_high by multiplying average gross revenue by the highest Adjusted Profit Percent from any segment (56.2% from <$100,000 segment).
Extracted Item 19 Section
Avg. Revenue: $558,702
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Unlock financial performance dataPADGETT BUSINESS SERVICES Franchise Analysis
Imagine diving into the unglamorous but essential world of small business tax and payroll support, where Padgett Business Services has quietly built a network since 1988. Item 19 unveils revenue figures with a striking gap between averages and medians, signaling that top performers thrive while others struggle. Amid low entry costs and conversion options for established operators, does this franchise reward accounting savvy or expose you to volatile results?
Item 7 lays out an initial investment of $8,700 to $84,920, including a hefty $62,750 franchise fee, making it accessible compared to many service brands—especially for conversions bringing $100K+ in existing revenue. Ongoing fees bite at 9% royalty, up to 2% ad fund, plus $585-$614 monthly PAS license, pressuring margins on Item 19's average gross revenue of $558,702 (median $402,905). Profit ranges from a stark -$55,870 loss to $313,990 gain, underscoring operator-dependent outcomes in targeting small businesses with tax prep, payroll, and counseling via proprietary systems.
System health shows resilience with 164 locations, just 3 terminations, 8 projected new units, and 8 transfers, but litigation history flags breach of contract, trademark, and termination disputes—potential red flags for legal risks. Franchising from Athens, GA, Padgett appeals to tax/accounting pros, yet wide profit variance demands scrutiny of local small business density and competition. Buyers should probe validated Item 19 data from recent franchisees, audit fee impacts on cash flow, and assess litigation resolutions for hidden liabilities.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How PADGETT BUSINESS SERVICES Compares
Key Insights
- Lower investment than 96% of Business Services franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
PADGETT BUSINESS SERVICES Current | $9K – $85K | $63K | 9.0% | 164 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 199 franchises | $120K – $289K | $46K | 10.4% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 199 Business Services franchises by location count.
Franchisee Contacts
157 franchisee contacts on file from official FDD filings.
157 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Breach of contract, trademark infringement, unfair competition, and termination disputes with a franchisee.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a PADGETT BUSINESS SERVICES franchise ranges from $8,700 to $84,920. This includes a franchise fee of $62,750. Ongoing royalty fees are 9.0% of gross sales.
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