Padgett Business Services Franchise Cost, Revenue & Review 2026
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. The 2025 FDD does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $117K – $117K
- 70th pct Financial Ser…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 167
- 59th 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 avg · 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.
- RETURNSTotal 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.
- RISKVerdict A (Strongest tier), verdict score 75/100 (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).
- 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.
- 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 10% below the typical financial services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown26 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.
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
- Greater of 9% of Gross Receipts OR minimum monthly amount…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
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 |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Padgett Business Services did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Padgett Business Services unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
95%
Above the 30–60% band. Verify revenue is per-unit average
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
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.
- Item 19 type
- revenue and profit by band
- Sample size
- 124
- vs category median 72
- Transparency tier
- none
- Categorical assessment of disclosure depth
- 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 average of 17.0%.
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 averages
How Padgett Business Services Compares
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
- 3
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.8%
- 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
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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)
- 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.
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.
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.
Litigation (Item 3)
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)
ⓘ 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 75 / 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
- 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
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 | none |
| 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
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 $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?
Padgett Business Services does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 75 out of 100 (higher is better), 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.
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.