Padgett Business Services Franchise Cost, Revenue and Closure Rate (2026 FDD)
Padgett Business Services is one of the franchises we compare in our bookkeeping services guide. Here is what it costs to open, what it charges every month, what its franchisees report taking in, and how many outlets closed in a year.
Where these numbers come from
The figures come from Padgett Business Services's 2026 Franchise Disclosure Document (FDD), the document every franchisor must give buyers before they sign. Revenue figures are sales as the brand reports them, before royalties and costs. They are not profit, and not a promise of what you would earn.
Preview: figures awaiting verification
Some numbers on this page haven't been checked against their sources yet.
What it costs
- Initial investment (FDD Item 7, includes the franchise fee)
- $117,295Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 7, new start-up franchise; does not include real estate. Includes $63,020 paid to Padgett. Owners converting an existing practice (at least $100,000 in revenue) are quoted $8,700–$84,920.
- Franchise fee
- $56,000Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 5, start-up franchise with no existing clients: $1,000 application fee, $37,000 initial license fee and $18,000 training fee. A $7,020 initial software fee is also paid to Padgett. Item 5 states $62,750 in total initial fees while the cover page states $63,020; ask Padgett which is current.
- Royalty
- 9% of revenuePending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 6: the greater of 9% of gross receipts or a monthly minimum that rises from $100 to $1,500. Padgett may raise the rate up to 12%. An advertising fund of up to 2% has not been established, so it is not included. Padgett also charges a software license fee of $7,020–$7,370 a year.
Compared with starting your own
- Padgett Business Services initial investment
- $117,295Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 7, new start-up franchise; does not include real estate. Includes $63,020 paid to Padgett. Owners converting an existing practice (at least $100,000 in revenue) are quoted $8,700–$84,920.
- Independent bookkeeping services startup cost
- $90 – $1,589*Pending verificationSourcesApple Store — Buy 13-inch MacBook Air(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Intuit QuickBooks — QuickBooks Online Accountant / Intuit Accountant Suite page(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Xero — Partner program (US)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California Secretary of State — Business entities fee schedule (Rev. 06/2018)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 3 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded.
The independent figure is our startup budget from the guide, lean plan low to professional plan high, with no franchise fee and no royalties afterwards. * Some startup lines aren't sourced yet and are left out, so the real figure is higher.
What franchisees report taking in (FDD Item 19)
Item 19 reports fiscal 2025 revenue and adjusted profit for 130 franchisees grouped by revenue size, plus average client fees; the figures below are the average revenue in each size group.
- Average 2025 revenue, franchisees with $500,000 or more (47 of 130 franchisees; gross revenue, not profit)$1,143,869.47 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Average adjusted P&L for this group. FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Average 2025 revenue, franchisees with $300,000–$499,999 (23 of 130 franchisees; gross revenue, not profit)$402,904.89 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Average 2025 revenue, franchisees with $100,000–$299,999 (44 of 130 franchisees; gross revenue, not profit)$194,190.56 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Average 2025 revenue, franchisees under $100,000 (16 of 130 franchisees; gross revenue, not profit)$66,136.38 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
Copied exactly from the brand's disclosure. These are sales before royalties, wages and other costs, not profit.
Outlets and closures (FDD Item 20)
- Franchised outlets at the start of 2025
- 166Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Closures = terminations + non-renewals + outlets that stopped operating in 2025 (FDD Item 20, Table 3). 2025 closures: 3 terminations and 1 ceased operations.
- Franchised outlets at the end of 2025
- 164Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Closures = terminations + non-renewals + outlets that stopped operating in 2025 (FDD Item 20, Table 3). 2025 closures: 3 terminations and 1 ceased operations.
- Closed during the year (terminated, not renewed, or stopped operating)
- 4Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Closures = terminations + non-renewals + outlets that stopped operating in 2025 (FDD Item 20, Table 3). 2025 closures: 3 terminations and 1 ceased operations.
- Closure rate (our calculation)
- 2.4%Pending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Our calculation: 4 closures ÷ 166 franchised outlets at the start of 2025. Closures = terminations + non-renewals + outlets that stopped operating in 2025 (FDD Item 20, Table 3). 2025 closures: 3 terminations and 1 ceased operations.
The closure rate is closures divided by franchised outlets at the start of the year. Outlets sold to a new owner aren't counted as closures. Closure rates for every brand.
Risk Meter for bookkeeping services
1.7 out of 5 (Low risk)
The score covers the kind of business, not this brand alone, from 6 factors with data (1 is the lowest risk). See every factor · How we score risk
What the franchise gives you
- Long-established brand serving small-business tax, payroll and bookkeeping
- Initial classroom training and ongoing tax seminars
- Bundled tax and accounting software through the franchisor
- Franchisor can prepare tax returns on your behalf until you qualify
- A network of other owners to learn from
The Bookkeeping Services guide · Bookkeeping Services franchise vs. independent · All franchise brands