Payroll Vault Franchise Cost, Revenue & Review 2026
- Investment
- $77K – $112K
- Disclosed sales
- $282K
- gross sales, not profit
- SBA charge-off
- Limited · 13 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Payroll Vault is a B2B payroll and workforce-management franchise serving small businesses. Franchisees run local offices, onboarding clients and managing payroll processing, tax filings, and HR-support add-ons.
FranchiseVerdict summary · 2026
A PAYROLL VAULT franchise requires a total initial investment of $77K – $112K, including a $69K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $282K[2]. FranchiseVerdict grade: B (Above average), 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 6 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $77K – $112K
- 64th pct Financial Ser…
- Avg gross sales
- $282K
- 11th pct Financial Ser…
- Royalty
- 6.0%
- 7th pct Financial Ser…
- Units
- 61
- 45th pct Financial Ser…
- SBA charge-off
- N/A
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 $77K – $112K including a $69K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $282K/year.
- RISKVerdict B (Above average), verdict score 66/100 (higher is better).
- GROWTHPositive: net +6 franchised outlets in the latest year (13 opened, 7 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Payroll Vault Franchising, LLC
- Parent company
- Prosperity Holdings, LLC
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Founder, Managing Member and CEO
- R. Sean Manning
- Incorporated in
- CO
- HQ
- 1860 W. Littleton Blvd., Littleton, CO 80120
- Auditor
- Whipplewood CPAs
- Audited financials
- Franchisor revenue
- $4.1M
- vs $2.9M prior year
Overview
About
- CEO
- R. Sean Manning
- Headquarters
- CO
- Founded
- 2012
- FDD year
- 2025
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost is about typical for a financial services franchise (near the category median).
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $69K | $69K |
| Working capital (3–6 mo) | $3K | $10K |
| Equipment, build-out, other | $6K | $33K |
| Total initial investment | $77K | $112K |
Source: PAYROLL VAULT 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $77K – $112K
- Middle of category vs category
- Liquid capital req'd
- $3K – $10K
- Top 40% of category vs category
- Franchise fee
- $69K – $69K
- Bottom third — review vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- $300
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $325 |
| Transfer fee | $7K |
| Renewal fee | $17K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 8% above the financial services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for PAYROLL VAULT until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, 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.
Total invested capital · disclosed
$101K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one PAYROLL VAULT 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 ad fund rate, 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $282K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and net profit
- Sample size
- 41 outlets
- vs category median 94 · small
- Range (low → high)
- $3K→$1.5MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 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.
Unit economics
Average unit generates $282K/year in gross sales. Revenue-to-investment ratio: 3.0x.
Fee burden
Total ongoing fee load of 6.0% — below the Financial Services median of 16.5%.
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (-1.8% 3-year CAGR) with 61 units.
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 Payroll Vault 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
- 61
- Opened
- 13
- Last reporting year
- Closed
- 7
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.5%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +5.9%
- Net unit change over 3 years
- 3-yr CAGR
- -1.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 29 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
29
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
10 current owners across 1 state.
- CO 10
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
- 13
- Loan volume
- $1.6M
- Median loan
- $125K
- 50th percentile
- Charge-off rate
- Limited · 13 loans
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 13 loans
- 5-yr charge-off
- Limited · 13 loans
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
- Typical loan rate
- 7.3%
- avg rate to borrowers
- vs industry
- 20.0%
- NAICS 541214
- Jobs supported
- 50
- 3.1 per loan
- Lender concentration
- 54%
- top lender's share
Borrower mix: 91% went to startups / new businesses, 9% to established operators
Top lenders financing Payroll Vault franchisees
Showing 3 of 6 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 Payroll Vault from SBA 7(a) FOIA data.
- Principal loss rate
- 8.2%
- Avg SBA guarantee
- 83%
- Avg interest rate
- 7.28%
- Avg chargeoff amount
- $133K
- Lender concentration
- 53.9%
- Job velocity
- 3.1 per $100K
- NAICS benchmark
- 20.0%
- NAICS 541214
- Jobs supported
- 50
Top SBA lendersTop lender holds 54% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 7 | $950K | 100.0% |
| 2 | Consumers National Bank | 2 | $65K | 0.0% |
| 3 | CDC Small Business Finance Corp. | 1 | $60K | N/A |
| 4 | Readycap Lending, LLC | 1 | $100K | 0.0% |
| 5 | InBank | 1 | $325K | N/A |
| 6 | BHCU D/B/A Propell Credit Union | 1 | $125K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 3 | 1 | 50.0% |
| OHOhio | 2 | 0 | 0.0% |
| CACalifornia | 1 | 0 | -- |
| COColorado | 1 | 0 | -- |
| GAGeorgia | 1 | 0 | -- |
| MIMichigan | 1 | 0 | -- |
| NJNew Jersey | 1 | 0 | -- |
| NYNew York | 1 | 0 | -- |
| PAPennsylvania | 1 | 0 | 0.0% |
| VAVirginia | 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?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Payroll Vault presents moderate-to-cautious risk: early-stage franchise system with undisclosed financials, high upfront costs relative to net income, and royalty structures that may strain smaller locations.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Whipplewood CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 8 discloses franchisor 2023 total revenue of $2,926,227, of which $1,021,846 (approx. 35%) came from required payroll software purchases/leases by franchisees. Audited financial statements (Item 21 / Exhibit H) for FYE Dec 31 2021-2023 are referenced but not present in the extracted text, so balance-sheet figures and auditor name are unavailable.
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: No
Score breakdown · what drove the 66 / 100 verdict
- 01MINORHigh royalty floor of $400/month ($4,800/year) creates breakeven pressure on lower-revenue locations
- 02MINORModest unit growth of 13% YoY with only 62 total units suggests early-stage system maturity risk
- 03MINORFranchise fee of $68,500 represents 88% of average annual net income, creating slow payback period
- 04MINORTotal investment ($77,375–$111,885) requires 12–18 months to recoup at stated profitability levels
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% 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 | 5 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 150,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Colorado (within 15 miles of headquarters) |
| Jury trial waiver | Yes |
| Governing law | CO |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 99 hrs
- On-the-job training
- 0 hrs
- Training location
- Online
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee (home office or existing space)
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
10 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 PAYROLL VAULT franchise?
The total investment to open a PAYROLL VAULT franchise ranges from $77K – $112K, with an initial franchise fee of $69K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PAYROLL VAULT franchise owners earn?
According to Item 19 of the PAYROLL VAULT FDD, the average gross sales per unit is $282K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns PAYROLL VAULT?
PAYROLL VAULT is franchised by Payroll Vault Franchising, LLC. Its parent company is Prosperity Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the PAYROLL VAULT 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 PAYROLL VAULT FDD and qualifies whose outlets they describe.
What is PAYROLL VAULT's franchise failure rate?
SBA 7(a) loan charge-off data is not available for PAYROLL VAULT (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many PAYROLL VAULT franchise locations are there?
As of their most recent FDD filing, PAYROLL VAULT has 61 total units in the United States, including 60 franchised units and 1 company-owned units. 13 new units were opened in the latest reporting year.
Is PAYROLL VAULT a good franchise to buy?
FranchiseVerdict rates PAYROLL VAULT as a B-grade franchise with a verdict score of 66 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.