Padgett Business ServicesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Padgett Business Services franchise requires a total initial investment of $63K – $117K, including a $63K franchise fee. Per the 2025 FDD, average unit revenue was $477K[2]. SBA 7(a) loans show a 8.7% charge-off rate across 65 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $63K – $117K
- 30th pct Financial Ser…
- Avg gross sales
- $477K
- 16th pct Financial Ser…
- Royalty
- N/A
- Units
- 167
- 47th pct Financial Ser…
- SBA default
- 8.7%
- system-wide median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 5.3x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1988. Systems this mature have refined operations and brand recognition.
199% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $63K – $117K including a $63K franchise fee.
- Average unit revenue of $477K/year, with an estimated 199% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 28/100. 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, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SmallBizPros, Inc. d/b/a Padgett Business Services
- Predecessor
- our Predecessor granted franchises for the operation of Padgett Services similar to those
- 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
- $66.1M
- vs $67.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Padgett Business Services franchisees operate as local accounting and bookkeeping service providers for small businesses, handling tax preparation, payroll processing, financial consulting, and back-office accounting. Day-to-day work involves client relationship management, tax/compliance work, and potential staff oversight as the business scales.
- CEO
- Jeffrey Phillips
- Headquarters
- GA
- Founded
- 1988
- FDD year
- 2025
- States available
- 41
FDD Item 7 · 2025 filing · 26 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee (Conversion Franchise) | $1K | $1K | |
| Initial License Fee (Conversion Franchise)not refundable | $3K | $13K | |
| Training Fee (Conversion Franchise)not refundable | $0 | $18K | |
| Travel and Living Expenses (Conversion Franchise) | $2K | $2K | |
| Real Estate Improvements (Conversion Franchise) | — | — | |
| Equipment and Fixtures (Conversion Franchise) | — | — | |
| Marketing (Conversion Franchise) | $0 | $41K | |
| Initial Software Fee (Conversion Franchise) | $0 | $7K | |
| Office Supplies (Conversion Franchise) | — | — | |
| Initial Insurance (Conversion Franchise) | — | — | |
| Rent, Telephone, Postage, etc. (Conversion Franchise) | — | — | |
| Other Expenses (Conversion Franchise) | $2K | $2K | |
| Additional Funds - 3 Months (Conversion Franchise) | $1K | $1K | |
| Application Fee (Start-Up Franchisees) | $1K | $1K | |
| Initial License Fee (Start-Up Franchisees)not refundable | $37K | $37K | |
| Training Fee (Start-Up Franchisees)not refundable | $18K | $18K | |
| Travel and Living Expenses (Start-Up Franchisees) | $2K | $2K | |
| Real Estate Improvements (Start-Up Franchisees) | — | — | |
| Equipment and Fixtures (Start-Up Franchisees) | $4K | $4K | |
| Marketing (Start-Up Franchisees) | $41K | $41K | |
| Total initial investment | $126K | $202K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$72K
15.0% margin
Unlevered ROIC
79%
EBITDA / total invested capital
Payback
15 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $63K – $117K
- Better than avg vs category
- Liquid capital req'd
- $1K – $1K
- Better than avg vs category
- Franchise fee
- $4K – $63K
- Near category avg vs category
- Royalty
- the greater of $1,500 or 9% of Gross Receipts (standard r…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
- Payback period
- 0.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 9% or minimum amounts ranging from $100-$1700/month for start-up franchisees |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $7K |
| Training fee | $18K |
| Transfer fee | $28K |
| Inventory (initial) | $2K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $477K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $179K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 198.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical Franchisee Financial Information
- Sample size
- 124 units
- vs category median 97
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Transparency
- 7 / 5
- vs category median 0 / 5 · above
Compared against 58 Financial Services brands
Revenue is 5.3x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Financial Services averages
How Padgett Business Services Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 167
- Opened
- 9
- Last reporting year
- Closed
- 8
- Turnover rate
- 4.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 75.0%
- Net growth (yr3)
- +0.6%
- Net unit change last year
- 3-yr CAGR
- -3.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- 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.
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%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 42
- Defaults
- 4
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Padgett Business Services's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 12 states
- Startup risk premium and job creation velocity
- 12-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Litigation (Item 3)
No litigation required to be disclosed
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)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 28 / 100 rating
- 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
- 04MINORNo Item 19 financial performance representations limits ability to validate $178k average net income claim
- 05MINORRoyalty 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip code |
| 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 |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 106 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisee
- 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
66 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Padgett Business Services · FDD (2025) PDF
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 $63K – $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?
According to Item 19 of the Padgett Business Services FDD, the average gross sales per unit is $477K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 risk score of 28 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.