Padgett Business Services franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.14 ↗

Franchise fees and ongoing costs

Franchise fee

$3,500 to $62,750 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

9% · % of Gross Receipts, payable monthly by the 10th; conversion franchisees pay a reduced 5% in year 1 and 6.5% in year 2 before reverting to 9%; startup franchisees instead pay the greater of 9% of Gross Receipts or an escalating flat monthly fee; royalty rate may be raised up to 2 times during the term to a max of 12%

Marketing contribution

2% (basis not captured; see original filing)

Technology fee

$7,020 - $7,370 per year (PAS License Fee), due prior to opening and annually thereafter

Other fees

Not captured

Working capital (FDD Item 7)

$1,200 for 3 months (security deposits, utility deposits, business licenses and other prepaid expenses), same figure for both conversion and start-up franchisees

Fees sourceFDD p.9 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.14 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average annualized revenue per client relationship (monthly fee, tax prep fee) and adjusted operating income (profit) margin by franchisee revenue bracket; not a single average/median gross sales figure per outlet

Reporting period

Fiscal year ended December 31, 2025

Sample

130 of 146 franchisees (165 franchised locations) that submitted complete financial information, out of 165 franchised locations subject to revenue reporting as of 12/31/2025; 16 franchisees excluded due to tax-season reporting timing

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.31 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

166

Year-end outlets

164

Net change

-2

Derivation

ending minus starting outlets

Openings

2

Terminations

3

Non-renewals

0

Other closures

1

Reacquisitions

0

Transfers

8

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.36 ↗

SBA loan history

Loan activity

7 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$604,950

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

4 loans

Historical charge-off share

0.00%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 24

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Padgett Business Services franchise cost?

Conversion franchise: $8,700 to $84,920; Start-up franchise: $117,295 to $117,295 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $3,500 to $62,750 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.14 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Padgett Business Services owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average annualized revenue per client relationship (monthly fee, tax prep fee) and adjusted operating income (profit) margin by franchisee revenue bracket; not a single average/median gross sales figure per outlet. Sample: 130 of 146 franchisees (165 franchised locations) that submitted complete financial information, out of 165 franchised locations subject to revenue reporting as of 12/31/2025; 16 franchisees excluded due to tax-season reporting timing. Period: Fiscal year ended December 31, 2025.

Item 19 performance sourceFDD p.31 ↗

What's the SBA charge-off rate for Padgett Business Services?

0.00%; numerator / denominator: 0 / 24. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $604,950; window: FY2023-FY2026 YTD through 2026-06-30; sample: 4 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗