Paramount Tax & Accounting
Bottom line
- Total investment $74K – $166K including a $40K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $498K/year (median $204K). Estimated payback in 0.6 years.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- System growing at 76.5% CAGR over 3 years with 92 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Paramount Tax & Accounting unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Paramount Tax & Accounting units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$299K
on $1.5M purchase
Total debt
$1.2M
SBA $0.7M + senior + seller note
Overview
About
Paramount Tax & Accounting franchisees operate seasonal tax preparation and accounting service offices serving individual and small-business clients. Day-to-day activities include client intake, tax return preparation (1040s, business returns, payroll), bookkeeping services, and compliance consulting. The model is heavily dependent on tax season (Jan-Apr) and requires licensed or experienced tax professionals.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-caution risk profile: regulatory compliance issues, unverified financial claims, and high royalty drag on profitability warrant deep validation with current franchisees.
Score breakdown · what drove the 47 / 100 rating
- 01MEDRegulatory violation: Maryland Securities Commissioner consent order (Feb 2023) for operating with expired franchise registration—indicates compliance gaps
- 02MINORHigh royalty burden: 10% on gross sales reduces net margins; at $497K avg revenue, that's ~$49.7K annually in royalties, impacting the $212.7K net income significantly
- 03MEDItem 19 absent: No financial performance claims disclosed in FDD; average revenue/net income figures are unverified and sourced from analyst data, not franchisor attestation
- 04MEDModest unit growth: 15.4% YoY growth is healthy but small system (92 units) provides limited peer network and economies of scale
- 05MEDHigh initial investment-to-fee ratio: $40K franchise fee represents 54-77% of total startup cost; limited financial cushion for working capital or underperformance period
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
83 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Paramount Tax & Accounting · FDD (2025) PDF