Payroll Vault Franchise Cost, Revenue & Review 2026
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]. SBA 7(a) loans show a 7.7% charge-off rate across 13 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
- $77K – $112K
- 61st pct Financial Ser…
- Avg gross sales
- $282K
- 11th pct Financial Ser…
- Royalty
- 6.0%
- 2nd pct Financial Ser…
- Units
- 55
- 48th pct Financial Ser…
- SBA charge-off
- 7.7%
- % 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 $77K – $112K including a $69K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $282K/year.
- RISKVerdict A (Strongest tier), verdict score 68/100 (higher is better). SBA loan charge-off rate of 7.7% across 13 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Payroll Vault Franchising, LLC
- Parent company
- Prosperity Holdings, LLC
- 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
- $2.9M
- vs $4.1M 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 runs 28% below the typical financial services franchise.
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%
- 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 11% above the financial services norm.
Source: FDD 2025 · Item 19
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
$39K
14.0% margin
Unlevered ROIC
39%
EBITDA / total invested capital
Payback
31 mo
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
39%
Within the 30–60% "attractive franchise" band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 PAYROLL VAULT units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$394K
on $2.0M purchase
Total debt
$1.6M
SBA $1.0M + senior + seller note
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
- 42 outlets
- vs category median 72
- Range (low → high)
- $3K→$1.5M
- 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 average of 17.0%.
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 55 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 averages
How Payroll Vault Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 55
- Opened
- 5
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 33.3%
- 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
3-year detail · Item 20
- Opened (3yr)
- 21
- Closed (3yr)
- 13
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
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)
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
- 7.7%
- 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)
- 92.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
- Typical loan rate
- 7.3%
- avg rate to borrowers
- vs industry
- 20.0%
- brand is below its industry ↓
- 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.
Premium insight
SBA Lending Report
Deep-dive into Payroll Vault's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 7.7% — 52% 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
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)
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 68 / 100 verdict
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify claimed $77,925 average net income
- 02MINORHigh royalty floor of $400/month ($4,800/year) creates breakeven pressure on lower-revenue locations
- 03MINORModest unit growth of 13% YoY with only 62 total units suggests early-stage system maturity risk
- 04MINORFranchise fee of $68,500 represents 88% of average annual net income, creating slow payback period
- 05MINORTotal 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 |
| 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
FDD download
PAYROLL VAULT · FDD (2025) PDF
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.
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?
Based on SBA 7(a) loan data, PAYROLL VAULT has a charge-off rate of 7.7% across 13 loans, meaning 7.7% 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 PAYROLL VAULT franchise locations are there?
As of their most recent FDD filing, PAYROLL VAULT has 55 total units in the United States, including 54 franchised units and 1 company-owned units. 5 new units were opened in the latest reporting year.
Is PAYROLL VAULT a good franchise to buy?
FranchiseVerdict rates PAYROLL VAULT as a A-grade franchise with a verdict score of 68 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.