Padgett Business Services Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$8,700 - $117,025
Franchise Fee
$3,500
Total US Locations
167
Business Summary
Padgett Business Services franchisees operate a business that offers a range of financial services, including tax preparation, payroll compliance and reporting, preparing financial statements for management, providing income tax advice, and business counseling. Franchisees utilize Padgett's authorized forms, systems, and procedures to deliver these services.
Corporate History
SmallBizPros, Inc. operates as Padgett Business Services, a franchise system specializing in tax, payroll, and business advisory services. The company was incorporated in Georgia on June 1, 1988, as Padgett Business Services USA, Inc., and later changed its corporate name to SmallBizPros, Inc. in June 2002. Padgett Business Services has been offering franchises since its incorporation in June 1988. Its predecessor, however, had been granting franchises for similar services prior to that, operating the business type since before 1984. Since 1998, Padgett Business Services has exclusively operated through its franchised system.
Financial Overview
Investment Range
$8,700 - $117,025
Franchise Fee (Low)
$3,500
Franchise Fee (High)
$59,700
Royalty %
9%
Equipment Costs (High)
$3,500
Working Capital
$1,200
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Padgett Business Services demonstrates strong financial health with substantial working capital and consistent positive net income in 2023 and 2024. The company maintains a healthy cash balance, exceeding $3.4 million in cash and cash equivalents at the end of 2024. The auditors issued an unqualified opinion on the financial statements, indicating no significant financial concerns.
Financing Details
Padgett Business Services does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or obligations of franchisees.
Performance Metrics
Total US Locations
167
Franchised Units
167
Corporate Units
0
Avg Square Footage
500
Franchising Since
1988
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Padgett Business Services has no litigation history to report for itself or its executives.
Bankruptcy History
Padgett Business Services has no bankruptcy history to report for itself or its executives.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Padgett Business Services franchisees must provide written notice, fully comply with the current Franchise Agreement and all other agreements with Padgett and its affiliates, and meet Padgett's current qualifications and training requirements. They will also need to sign Padgett's then-current Franchise Agreement, which may have different terms and conditions, including potentially different royalty and advertising fund contributions. Additionally, franchisees must ensure no federal, state, or local law adversely affects Padgett's franchising activities, secure approved facilities, and sign a general release. Padgett reserves the right to charge a renewal fee that is less than the current initial franchise fee.
Training & Support Program
Franchisor Assistance
Padgett Business Services provides extensive assistance to its franchisees. Before opening, Padgett offers initial training, counseling on space, equipment, and insurance, access to confidential operations manuals, and licenses its Padgett Processing Software, which includes a bundle from Thomson Reuters. Padgett also assists with setting up payments for initial software licenses and computers with third-party vendors. After opening, franchisees receive ongoing support including additional operations training if necessary, a tax advisory service, and continuing professional development training and seminars, including mandatory annual tax seminars and conferences. Padgett Business Services also has a Remote Processing Service that franchisees may be required to utilize if they are unable to perform certain services themselves.
Initial Training Hours
80
Training Location
Athens, GA or Virtual
Ongoing Support
After opening, Padgett Business Services franchisees receive ongoing assistance including up to six additional days of general operations training if deemed necessary, and access to confidential operations and training manuals which are regularly updated. Padgett also provides a tax advisory service for researching income tax issues. Franchisees benefit from continuing training, consultation, and guidance, and are entitled to attend all professional development seminars. Additionally, they are required to attend an annual tax seminar or equivalent education, and either an annual conference or one of the practice management seminars each year. Padgett Business Services may also provide remote processing services if a franchisee is determined not to be able to perform certain services.
Franchise Requirements
Ideal Candidate Profile
Padgett Business Services seeks franchisees who are dedicated, hands-on owners, prohibited from being absentee owners or operating other businesses outside of their Padgett franchise. Ideal candidates typically have current or previous experience in income tax, and experience in general business, accounting, or financial statement preparation is also considered beneficial. While prior experience in these areas is not strictly required, franchisees may need to hire employees to perform certain functions until they gain the necessary knowledge.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
Padgett Business Services territories are determined by specific zip codes, which are mutually agreed upon by Padgett and the franchisee before the Franchise Agreement is signed. Padgett reserves the right to adjust the territory if the U.S. Postal Service changes or subdivides the zip codes within it.
Staffing Notes
Padgett Business Services encourages its franchisees to hire appropriate staff members. Franchisees are solely responsible for selecting and hiring their personnel and have full control over their operations. In certain situations, Padgett may require franchisees to hire specific employees to perform particular functions until the franchisee acquires the necessary knowledge to perform those functions themselves.