Payroll Vault Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$77,375 - $111,885
Franchise Fee
$61,650
Total US Locations
62
Business Summary
Payroll Vault Franchising, LLC offers franchisees the opportunity to operate a business that provides accurate and reliable software-based payroll and employee management services. These services include payroll check writing, payroll tax payment and reporting, independent contractor checks writing and reporting, and various related human capital management and workforce management services to businesses of all sizes.
Corporate History
Payroll Vault Franchising, LLC was formed in Colorado on June 22, 2012, and commenced franchising operations in July 2012. Its parent company is Prosperity Holdings, LLC, which was organized in December 2019. An affiliate, Payroll Service Group, LLC, formed in 2003, has provided similar payroll services to the public under the PAYROLL VAULT brand and licenses the trademarks to the franchisor. In April 2023, a 10% ownership interest in the parent company was sold to Metric Payroll Vault LLC, with options for an additional 41% interest by December 2026.
Financial Overview
Investment Range
$77,375 - $111,885
Franchise Fee (Low)
$61,650
Franchise Fee (High)
$88,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$375
Equipment Costs (High)
$2,275
Working Capital
$6,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Payroll Vault Franchising, LLC has faced financial challenges, with the franchisor noting that its financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The company reported net losses in 2022 and 2023, although it showed a net income in 2024. The balance sheets indicate a significant member's deficit and that total liabilities substantially exceed total assets. Furthermore, the company has a considerable unsecured debt to an affiliate with no stated repayment terms, and it has relied on cash from financing activities to support its operations.
Financing Details
Payroll Vault Franchising, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the company does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
62
Franchised Units
61
Corporate Units
1
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Payroll Vault Franchising, LLC has no litigation history to report in Item 3 of its FDD.
Bankruptcy History
Payroll Vault Franchising, LLC has no bankruptcy information to disclose in Item 4 of its FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
10 years
Renewal Conditions
To renew, Payroll Vault franchisees must provide at least 90 days' prior notice, have no outstanding material defaults or money owed, and not have received more than four default notices during the current term. Payroll Vault Franchising, LLC must not have decided, using its reasonable business judgment, not to renew the agreement. Franchisees are required to sign the then-current franchise agreement, which may have terms significantly different from their original agreement, within 60 days before the current term ends. They must also pay the then-current Successor Franchise Fee, which may be reduced based on certain performance criteria, and sign a general release.
Training & Support Program
Franchisor Assistance
Payroll Vault Franchising, LLC provides extensive support to its franchisees both before and after opening. Pre-opening, Payroll Vault helps define the territory, provides initial training, grants access to the Payroll Software, offers a list of approved suppliers, loans operational manuals, and supplies initial telephone and email support including five email addresses. After opening, Payroll Vault continues to offer assistance through optional and mandatory conferences and seminars, updates to manuals and the System, and reviews all promotional materials and advertising. After the first 12 months, franchisees can receive or may be required to take additional training or operational support for an extra fee. Payroll Vault also conducts discretionary visits to ensure quality, supplies updates for the Payroll Software, and offers promotional materials and advertising programs. The company also provides access to CRM software, digital marketing services, and optional social media marketing management for a fee. Franchisees can also engage Payroll Vault for Special Projects for an additional fee.
Initial Training Hours
99
Training Location
Online/virtual
Ongoing Support
Payroll Vault Franchising, LLC provides various ongoing support services. These include offering additional conferences, seminars, and programs, some of which may be mandatory and incur tuition fees. Franchisees receive updates to manuals, the overall System, and trademarks, and Payroll Vault reviews all promotional and advertising materials. After the first 12 months of operation, additional training, software training, or support for operational standards can be provided, though these come with a fee. Payroll Vault conducts discretionary visits to ensure quality, supplies updates for the Payroll Software, and offers promotional materials and advertising programs. The company also provides access to CRM software, digital marketing services, and optional social media marketing management for a fee. Franchisees are required to attend an annual conference, covering their travel and attendance fees. An annual Owners Exchange Meeting is held, which is currently voluntary but may become mandatory with tuition. Regional meetings may also be required up to twice a year, without tuition but with franchisee-covered travel expenses.
Franchise Requirements
Ideal Candidate Profile
Payroll Vault Franchising, LLC seeks franchisees or a Principal Operator who will be directly involved in the full-time, day-to-day supervision and operation of the business. The Principal Operator must own at least 25% of the franchisee's business entity. While not explicitly stated as a requirement, the franchisor values management skills, business acumen, and sales effectiveness, and recommends that the owner actively participate in the daily operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Home-Based
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Payroll Vault Franchising, LLC defines its initial franchise territories based on a population of no less than 150,000 individuals. Franchisees may later expand their territory by purchasing contiguous additional territories of either 75,000 or 150,000 individuals. Territories can be defined using ZIP codes, street names, or other natural or artificial boundaries.
Staffing Notes
Payroll Vault Franchising, LLC clearly states that franchisees are solely and exclusively responsible for all aspects of their employees, including hiring, training, scheduling, payment of taxes, workers' compensation insurance, and compliance with all applicable employment laws. Payroll Vault Franchising, LLC does not offer any advice or make determinations regarding the essential terms or conditions of franchisee employees' employment.