Padgett Business Services Franchise Cost, Revenue & Review 2026
- Investment
- $117K – $117K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 8.7%
- on 65 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Padgett Business Services is a franchise providing accounting, bookkeeping, payroll, and tax services to small businesses. Franchisees run a local practice managing client books, compliance, and advisory work, typically office- or home-based.
FranchiseVerdict summary · 2026
A Padgett Business Services franchise requires a total initial investment of $117K – $117K, including a $4K – $63K franchise fee and an ongoing 9.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 8.7% charge-off rate across 65 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $117K – $117K
- 73rd pct Financial Ser…
- Avg gross sales
- N/A
- Royalty
- 9.0%
- 16th pct Financial Ser…
- Units
- 167
- 57th pct Financial Ser…
- SBA charge-off
- 8.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $117K – $117K including a $63K franchise fee, 9.0% ongoing royalty.
- RETURNSItem 19 reports revenue and profit by band rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better). SBA loan charge-off rate of 8.7% across 65 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +1 franchised outlets in the latest year (9 opened, 8 closed) (Item 20).
- DATAItem 19 reports revenue and profit by band rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- SmallBizPros, Inc. d/b/a Padgett Business Services
- Parent company
- SmallBizPros, Inc.
- FDD Item 1, page 6 of the 2025 FDD
- Predecessor
- Padgett Business Services USA, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Jeffrey Phillips
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- GA
- HQ
- 1550 Timothy Road, Suite 101, Athens, Georgia 30606
- Auditor
- Turner and Patat, P.C.
- Audited financials
- Franchisor revenue
- $67.9M
- vs $66.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Jeffrey Phillips
- Headquarters
- GA
- Founded
- 1988
- FDD year
- 2025
- States available
- 41
Can you afford it, and what does the money buy?
Entry cost runs 24% above the typical financial services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee | $1K | $1K | |
| Initial License Fee | $37K | $37K | |
| Training Fee | $18K | $18K | |
| Travel and Living Expenses | $2K | $2K | |
| Real Estate Improvements | — | — | |
| Equipment and Fixtures | $4K | $4K | |
| Marketing | $41K | $41K | |
| Initial Software Fee | $7K | $7K | |
| Office Supplies | $2K | $2K | |
| Initial Insurance | $800 | $800 | |
| Rent, Telephone, Postage, Etc. | $1K | $1K | |
| Other Expenses | $2K | $2K | |
| Additional Funds –3 Months | $1K | $1K | |
| Total initial investment | $117K | $117K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $117K – $117K
- Bottom third — review vs category
- Liquid capital req'd
- $1K – $1K
- Top 40% of category vs category
- Franchise fee
- $4K – $63K
- Bottom third — review vs category
- Royalty
- 9.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| Marketing / ad fund | 2.0% |
| Technology fee | $7K |
| Training fee | $18K |
| Transfer fee | $28K |
| Inventory (initial) | $2K |
| Total fee load | 11.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Padgett Business Services is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Padgett Business Services unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Item 19 type
- revenue and profit by band
- Sample size
- 124
- vs category median 94
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 0 / 10 · above
Compared against 45 Financial Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 11.0% — below the Financial Services median of 16.5%.
Disclosure
Item 19 reports revenue and profit by band rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -3.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
75% of franchisees own multiple units — high repeat-buyer rate signals strong unit economics and operator satisfaction.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services medians
How Padgett Business Services Compares
Category median of published Financial Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 167
- Opened
- 9
- Last reporting year
- Closed
- 8
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 75.0%
- Net growth (3-yr)
- -3.5%
- Net unit change over 3 years
- 3-yr CAGR
- -3.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 5
- Not renewed
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
- Transfer rate
- 3.0%
- Owners selling to other franchisees
- Ceased ops
- 1.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
65 current owners across 12 states.
- CA 14
- FL 11
- GA 10
- IL 9
- CO 6
- CT 5
- AL 3
- AZ 3
- IA 1
- ID 1
- IN 1
- KS 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 65
- Loan volume
- $12.8M
- Median loan
- $255K
- 50th percentile
- Charge-off rate
- 8.7%
- on 65 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 42
- Defaults
- 4
- Typical loan rate
- 6.6%
- avg rate to borrowers
- vs industry
- 0.0%
- brand is above its industry ↑
- Jobs supported
- 123
- 1.5 per loan
- Lender concentration
- 21%
- top lender's share
Borrower mix: 18% went to startups / new businesses, 82% to established operators
Top lenders financing Padgett Business Services franchisees
Showing 3 of 42 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Padgett Business Services from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.60%
- Lender concentration
- 20.8%
- Job velocity
- 1.5 per $100K
- NAICS benchmark
- 0.0%
- NAICS 541211
- Jobs supported
- 123
Top SBA lendersTop lender holds 21% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 5 | $1.0M | 0.0% |
| 2 | Celtic Bank Corporation | 2 | $300K | 0.0% |
| 3 | Harborstone CU | 2 | $78K | 0.0% |
| 4 | United Midwest Savings Bank National Association | 2 | $2.2M | 0.0% |
| 5 | Town and Country CU | 2 | $875K | N/A |
| 6 | The Canandaigua National Bank and Trust Company | 1 | $265K | 0.0% |
| 7 | Byline Bank | 1 | $60K | 0.0% |
| 8 | JPMorgan Chase Bank, National Association | 1 | $25K | 0.0% |
| 9 | BankUnited, National Association | 1 | $620K | N/A |
| 10 | Stearns Bank National Association | 1 | $235K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 3 | 0 | 0.0% |
| COColorado | 3 | 0 | 0.0% |
| TXTexas | 3 | 0 | 0.0% |
| WAWashington | 3 | 0 | 0.0% |
| ILIllinois | 2 | 0 | 0.0% |
| NDNorth Dakota | 2 | 0 | -- |
| NYNew York | 2 | 0 | 0.0% |
| TNTennessee | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | -- |
| INIndiana | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 8.7% — 46% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Padgett shows modest profitability but concerning stagnation, unprotected territories, and lack of transparent financial disclosure—moderate-to-high risk for multi-unit or undercapitalized franchisees.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Turner and Patat, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total Revenue of $67,855,904 (FYE 12/31/2024) is gross and includes Gross Franchisee Revenues of $67,546,806 that are largely passed through; "Revenues Retained by Franchisees" of $62,916,037 is deducted to arrive at Gross Profit of $4,939,867. Other Operating Revenue was $278,098 and Franchise Fees-Initial Sale & Transfer were $31,000. Franchisor entity is SmallBizPros, Inc. (consolidated). Prior year (2023) Total Revenue $66,124,888.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 70 / 100 verdict
- 01MINORStagnant unit growth (0.6% YoY) suggests market saturation or franchisee dissatisfaction in a 167-unit system
- 02MINORHigh franchise fee ($62,750) relative to investment range ($8,700-$117,025) creates misalignment and barrier to entry
- 03MINORUnprotected territory exposes franchisees to direct competition from same-brand operators and encroachment
- 04MINORRoyalty floor of $1,500/month ($18k annually) creates break-even pressure for newer or slower-performing locations
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Georgia (mediation required before arbitration) |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 106 hrs
- On-the-job training
- 0 hrs
- Training location
- Athens, GA or Virtual; regional locations for ongoing
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisee (Padgett does not select sites)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Padgett Accounting System (PAS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Padgett Accounting System (PAS)
Item 20 · call current owners
Franchisee Contacts
65 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Padgett Business Services franchise?
The total investment to open a Padgett Business Services franchise ranges from $117K – $117K, with an initial franchise fee of $63K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Padgett Business Services franchise owners earn?
Item 19 of the Padgett Business Services FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Padgett Business Services?
Padgett Business Services is franchised by SmallBizPros, Inc. d/b/a Padgett Business Services. Its parent company is SmallBizPros, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Padgett Business Services FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Padgett Business Services FDD and qualifies whose outlets they describe.
What is Padgett Business Services's franchise failure rate?
Based on SBA 7(a) loan data, Padgett Business Services has a charge-off rate of 8.7% across 65 loans, meaning 8.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Padgett Business Services franchise locations are there?
As of their most recent FDD filing, Padgett Business Services has 167 total units in the United States, including 167 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is Padgett Business Services a good franchise to buy?
FranchiseVerdict rates Padgett Business Services as a A-grade franchise with a verdict score of 70 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.