Padgett Business Services
Padgett Business Services is a franchisor of 300+ independently-owned tax, accounting, payroll, and advisory offices serving over 10,000 small businesses across North America, generating revenue from initial fees and royalties on franchisee gross revenue.
- Company typePrivate
- Founded1965
- HeadquartersAthens, United States
- Headcount11–50
- GTM typeB2B and B2C
- OfferingServices
What Padgett Business Services does
Padgett Business Services, operating under legal entity SmallBizPros, Inc., is a privately-held franchisor headquartered in Athens, Georgia, founded in 1965 by Walter Padgett. The company licenses the Padgett brand, operating systems, and technology stack to a network of 300+ independently-owned accounting, tax, payroll, and advisory offices across the U.S. and Canada. Each franchisee delivers direct services to small business owners and individual taxpayers, with the franchisor generating revenue through initial franchise fees (starting at approximately $9,250) and ongoing royalties of 4.5%-9% of franchisee revenue. Franchisees report profit margins of 36-40% versus 15-26% for non-Padgett peers, supported by a vetted cloud-based technology platform, integrated software partnerships (QuickBooks, Xero), and a community-driven ecosystem including Mastermind groups and an annual tax conference. Padgett supports over 10,000 small businesses and maintains a regulatory presence in Washington, D.C. for over 25 years, including representation on the IRS Advisory Council. Leadership comprises CEO Jeff Phillips and President Roger Harris; Walter Padgett remains the founder. The company has no disclosed external funding, parent company, or public ownership structure.
Padgett Business Services firmographics
Firmographics- Name
- Padgett Business Services
- Legal name
- SmallBizPros, Inc.
- Website
- https://padgettadvisors.com
- Company type
- Private
- Founded year
- 1965
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Padgett Business Services is a franchisor of 300+ independently-owned tax, accounting, payroll, and advisory offices serving over 10,000 small businesses across North America, generating revenue from initial fees and royalties on franchisee gross revenue.
- Ownership category
- akta.pro rank
Padgett Business Services industry classification
Industry- Product category
- Small Business Accounting, Tax & Advisory Services
- NAICS
- Accounting, Tax Preparation, Bookkeeping, and Payroll Services (54121), Office Administrative Services (5611)
- SIC
- Services-Facilities Support Management Services (8744)
- akta.pro primary industry
- Financial Planning & Analysis Support (Budgeting, Forecasting, Management Reporting) (BPAAAGAJ)
- akta.pro secondary industry
- Franchise Resale & Franchise Brokerage (Transfers/Resales) (FSAEAIAG)
Keywords
Where Padgett Business Services is headquartered
LocationHeadquarters
- HQ city
- Athens
- HQ country
- United States
- HQ region
- North America
Offices3 records
Markets served
Padgett Business Services business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Others
Revenue model
- Franchise Royalty Fees: Ongoing royalty fees from franchisees (Padgett office owners) ranging from 4.5% to 9% of revenue. This is the primary recurring revenue stream from the franchise network.
- Initial Franchise Fee: One-time franchise fee for joining the Padgett network, with flexible pricing typically starting at $9,250. Additional costs for software, website, and supplemental marketing services with discounted contracts.
- Professional Services Revenue: Revenue generated from providing tax, accounting, payroll, and business consulting services directly to small business clients and individuals through the Padgett office network.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| One time/ perpetual license | Pay-as-you-go | Initial franchise fee - significantly below market |
| Subscription | Monthly | Ongoing royalty fees - competitive rates |
Go-to-market motion3 records
Distribution channels2 records
Marketing channels6 records
Padgett Business Services product offering
Product offeringCore offering
Padgett Business Services operates a franchise network of 300+ independently owned offices across the U.S. and Canada that delivers tax preparation, accounting, payroll, and business consulting services to small businesses and individuals. The company also sells franchise rights to accountants and tax professionals, providing them with proven systems, vetted technology stack, marketing support, and community network in exchange for initial franchise fees and ongoing royalties (4.5%–9% of revenue).
Differentiator
Problem solved
Functional benefit
Brands
- Padgett Network: Nationwide network of independently owned accounting, tax, and payroll firm owners
Products and services
- Tax Services
Quantifiable outcome
- 36% profit margins for franchisees vs 15% typical for non-Padgett firms
- +3 more outcomes
Companies that use Padgett Business Services
Customer profileNamed customers5 records
Segments3 records
Ideal customer profiles3 records
Padgett Business Services technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration2 records
Feature2 records
Padgett Business Services partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered core and minor.
- QuickBookscoreQuickBooks integration and partnership. Padgett offices commonly hold QuickBooks certifications and utilize QuickBooks software for client accounting services.
- XerocoreXero partnership and integration. Padgett offices utilize Xero accounting software and hold relevant certifications.
- CPA Site SolutionsminorMarketing partnership providing website and SEO services to Padgett franchisees. Part of the robust marketing and branding package offered to franchise owners.
- IRS Advisory CouncilcorePadgett leadership has served on the IRS Advisory Council and testified before Congress on behalf of small business owners, providing regulatory insight and advocacy.
Scale indicators9 records
Recent moves6 records
Expansion highlights5 records
Padgett Business Services competitors and assessment
Company assessmentEmerging players
- KPMG Spark: Big-Four-affiliated online bookkeeping and tax service for SMBs — competes for Padgett's small business clients seeking a digitally delivered accounting partner.
- Intuit QuickBooks Live: Intuit's on-demand bookkeeping and tax service staffed by certified experts using QuickBooks — directly competes with Padgett offices on SMB bookkeeping, advisory, and tax services.
- Botkeeper: AI-driven bookkeeping platform serving SMBs and accounting firms — overlaps with Padgett's bookkeeping and monthly accounting services and signals the technology-enabled trajectory Padgett franchisees may need to adopt.
- Bench (by H&R Block): Tech-enabled SMB bookkeeping and accounting service now owned by H&R Block — directly competes for Padgett's small business bookkeeping and financial reporting clients.
Direct peers
- H&R Block: Largest U.S. tax preparation franchise network serving individuals and small businesses with tax, bookkeeping, and advisory services through company-owned and franchised offices — direct franchise-network competitor to Padgett.
- Liberty Tax: Tax preparation franchise network with thousands of U.S. offices serving individual and small business clients — directly comparable franchise GTM and customer overlap with Padgett.
- Block Advisors: H&R Block's small business accounting and advisory brand offering bookkeeping, payroll, and tax services to SMBs — directly comparable to Padgett's tax, accounting, payroll, and advisory offering.
- 1-800Accountant: Virtual accounting and tax services firm serving small businesses and individuals with on-demand accountants — comparable customer segment and service mix to Padgett, though delivered via centralized model rather than franchise.
- Jackson Hewitt Tax Service: Franchised tax preparation chain serving individual and small business clients in retail locations — directly competes with Padgett offices on seasonal and year-round tax services.
Broad incumbents
- BDO USA: Top-tier global accounting and advisory firm serving SMB and mid-market clients with tax, accounting, payroll, and advisory services — broad incumbent whose SMB practice overlaps Padgett's segment.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat6 records
Key risks6 records
Key highlights6 records
Customer concentration
Padgett Business Services social profiles
Digital presencePadgett Business Services financial estimates
Financial estimateRevenue estimate
Valuation estimate
Padgett Business Services leadership team
Management profileNumber of profiles
Profiles3 records
Padgett Business Services funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Padgett Business Services M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Padgett Business Services
What does Padgett Business Services do?
Padgett Business Services operates a franchise network of 300+ independently owned offices across the U.S. and Canada that delivers tax preparation, accounting, payroll, and business consulting services to small businesses and individuals. The company also sells franchise rights to accountants and tax professionals, providing them with proven systems, vetted technology stack, marketing support, and community network in exchange for initial franchise fees and ongoing royalties (4.5%–9% of revenue).
Is Padgett Business Services a public or private company?
Padgett Business Services is a private company. It is classified as unknown and is currently operating.
When was Padgett Business Services founded?
Padgett Business Services was founded in 1965. It employs 11 to 50 people.
Where is Padgett Business Services based?
Padgett Business Services is headquartered in Athens, United States, in the North America region.
How does Padgett Business Services make money?
Three revenue lines are on record. Franchise Royalty Fees are the primary driver. The others are initial Franchise Fee and professional Services Revenue.
Who are Padgett Business Services's main competitors?
Emerging players on record are KPMG Spark, Intuit QuickBooks Live, Botkeeper and Bench (by H&R Block). Direct peers are H&R Block, Liberty Tax, Block Advisors, 1-800Accountant and Jackson Hewitt Tax Service. BDO USA is listed as a broad incumbent.
Does Padgett Business Services have an API?
No public API is recorded for Padgett Business Services.
What industry is Padgett Business Services in?
Padgett Business Services's product category is Small Business Accounting, Tax & Advisory Services. Its primary akta.pro industry code is BPAAAGAJ, Financial Planning & Analysis Support (Budgeting, Forecasting, Management Reporting), with a secondary code of FSAEAIAG, Franchise Resale & Franchise Brokerage (Transfers/Resales). Its NAICS code is 54121 and its SIC code is 8744.