Paramount Tax & Accounting Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$74,100 - $166,000
Franchise Fee
$32,000
Total US Locations
74
Business Summary
Paramount Tax & Accounting operates businesses that provide federal and state tax return preparation, tax resolution, accounting, and related financial services to individuals and businesses. Franchisees can operate from either a home office or a leased commercial space, and services can be provided in-person at the location or virtually.
Corporate History
Paramount Franchising LLC was organized as a Utah limited liability company on September 23, 2016, and later redomesticated to a Nevada limited liability company on February 7, 2022. The company began offering Paramount Tax & Accounting franchises in 2018. Before this, a predecessor entity, Paramount Franchising, LLC (Florida), offered franchises from 2017 to 2018, selling 6 units before it was dissolved to finalize a partnership separation. An affiliate, Paramount Tax & Accounting CPAs, PC, has been operating a similar tax and accounting business in Salt Lake County, Utah, since 2008.
Financial Overview
Investment Range
$74,100 - $166,000
Franchise Fee (Low)
$32,000
Franchise Fee (High)
$40,000
Royalty %
10%
Marketing %
5%
Equipment Costs (Low)
$20,000
Equipment Costs (High)
$30,000
Working Capital
$27,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Paramount Franchising appears to be in a generally stable financial position. The company's auditors provided an unmodified opinion on its financial statements for 2023 and 2022, indicating no going concern issues. Paramount Franchising has maintained positive working capital, which refers to the funds available to cover short-term liabilities. Operating revenues have shown consistent growth from $1,228,086 in 2021 to over $2 million in 2023, driven by increasing initial franchise fees and fulfillment fees, alongside strong royalty income. Cash flow from operating activities has also been positive each year. However, Paramount Franchising has made substantial member distributions (owner draws) that have exceeded its net income in both 2022 and 2023. This practice led to a decrease in cash and cash equivalents from $225,319 in 2021 to $62,616 in 2023, though unaudited interim financials for May 1, 2024, show a rebound to $386,302.84 in cash. The company adopted a new revenue recognition accounting standard in 2022, which significantly changed how deferred revenue from initial franchise fees is reported, effectively reducing reported liabilities. As of May 1, 2024, the company also reported a $100,000 long-term liability as a note payable to Jon Wilhelm, the CEO.
Financing Details
Paramount Tax & Accounting does not offer any direct or indirect financing to its franchisees and does not guarantee their notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
74
Franchised Units
72
Corporate Units
2
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Paramount Franchising LLC had one administrative proceeding in Maryland where it entered into a consent order on February 14, 2023. This was for allegedly selling a franchise to a Maryland resident when Paramount Franchising LLC's registration in Maryland had expired. Paramount Franchising LLC offered the franchisee rescission of the agreement, but the franchisee chose to remain in the franchise system. Paramount Franchising LLC does not have any other litigation that needs to be disclosed.
Bankruptcy History
Paramount Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Term
5 years
Renewal Conditions
Paramount Tax & Accounting franchisees may obtain a successor franchise agreement for up to two additional 5-year terms. To renew, franchisees must provide timely advance notice (between 90 and 180 days prior to the term's end), be in compliance with their current agreement and all other agreements with Paramount Franchising LLC or its affiliates, agree to make renovations and changes to the business to conform to then-current System Standards within a timeframe acceptable to Paramount Franchising LLC, sign Paramount Franchising LLC's then-current standard form of franchise agreement (which may have materially different terms and conditions, including fees, but without an additional initial franchise fee or renewal term), and execute a general release of all claims against Paramount Franchising LLC, its affiliates, and their respective owners, officers, directors, agents, and employees.
Training & Support Program
Franchisor Assistance
Paramount Tax & Accounting provides pre-opening and ongoing assistance. Before opening, Paramount Franchising LLC helps franchisees by reviewing and advising on potential locations, providing criteria for Paramount Tax & Accounting locations, and making its standard building plans, specifications, and vendor lists available. If requested, Paramount Franchising LLC reviews the franchisee's pre-opening business plan and financial projections and advises on the market introduction plan. Paramount Franchising LLC also conducts an initial training program and provides access to its confidential operating manual. During operation, Paramount Franchising LLC provides advice (by phone or electronic communication) regarding improving and developing the business and resolving operating problems upon request. It offers recommended prices for products and services and provides recommended or required administrative, bookkeeping, accounting, and inventory control procedures. Paramount Franchising LLC maintains a website for the brand, which includes the franchisee's business information. If in-person support is requested, Paramount Franchising LLC may charge a fee plus out-of-pocket expenses.
Initial Training Hours
82
Training Location
Salt Lake County, Utah or via virtual video conference
Ongoing Support
After opening, Paramount Tax & Accounting provides advice to franchisees (by telephone or electronic communication) regarding improving and developing their business and resolving operating problems, if requested. Upon request, it provides recommended prices for products and services and recommended or required administrative, bookkeeping, accounting, and inventory control procedures. Paramount Franchising LLC maintains a website for the Paramount Tax & Accounting brand, including franchisee's business information and telephone number, and designates the vendor for the website and any SEO services. Paramount Franchising LLC may require additional training programs for franchisees or their personnel, with a reasonable fee (currently $1,500 per person) and responsibility for travel and living expenses. It may also conduct conferences and seminars, which are currently optional but may become mandatory for the principal executive, requiring franchisees to pay registration fees and travel/living expenses.
Franchise Requirements
Ideal Candidate Profile
The ideal candidate profile for a Paramount Tax & Accounting franchisee includes a principal executive (who must own at least 10% of the business) or another employee who is a licensed professional (CPA, EA, CA, or attorney). This licensed professional must spend at least 10 hours a week engaged in the business and be authorized to communicate with the IRS and state taxing authorities for tax return preparation and resolution. While personal, direct operation by the principal executive is not required, it is recommended, and the principal executive must complete the initial training program.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
part-time
Territory Type
exclusive
Territory Size Requirements
Paramount Tax & Accounting territories are generally defined by one or more ZIP codes with a population base of approximately 100,000 people. The franchisor reserves the right to adjust boundaries if ZIP codes are revised or the population exceeds 150,000 people, ensuring the territory maintains at least 100,000 people. Franchisees may also be required to open a second outlet if they reach 3,500 clients or maintain an average of 3,000 clients over a 12-month period, which would divide the original territory into two separate areas.
Staffing Notes
Paramount Tax & Accounting requires that the principal executive or another employee of the business be a licensed professional (CPA, EA, CA, or attorney) who dedicates at least 10 hours per week to the business. This licensed professional is responsible for e-filing all tax returns and approving all work produced by the firm. The business office must be open at least 30 hours per week (excluding the week between Christmas and New Year's). While Paramount Franchising LLC may offer a sample employee guide and suggested staffing levels as an example, franchisees are solely responsible for all employment decisions, including hiring and management. The general manager, whether the principal executive or a hired individual, must successfully complete the franchisor's training program. Franchisees cannot permit employees or contractors to perform bookkeeping, tax, or accounting work outside of the franchised business.