More facts here…
Launching a new enterprise is a life changing experience and we want to make sure we answer as many of your questions as possible. The FAQs below are sorted into 5 sections to help simplify your research.
How do I get started?
Our Franchise Development process helps you to learn about Payroll Vault at each step: Introductory Call, Application, FDD, CEO Call, Franchisee Validations, Pro Forma Review, Discovery Day, Franchise Awarded! We want to make sure this business is a good fit for you personally and professionally, and that you are a good fit for the Payroll Vault Family. We have the Foundation of a successful business model and the Systems and Strategies in place to support you in your Success!
How does the business work?
Each one of our franchise offices operates as a full-service payroll company.
- Marketing, sales, branding and payroll processing are done by the franchisee in their office. This keeps everything local for your clients and makes you the go-to expert in your local business community for payroll services. We DON’T have overseas call centers or processing centers, and Payroll Vault clients love that all their information stays local!
- Along with payroll processing, Payroll Vault has a suite of Workforce Management Services to support our clients: Human Resources, Labor Poster Program, Pay-As-You-Go Worker’s Compensation, Pay Card, Time & Attendance, Scheduling, and many more! These services also become additional revenue for the franchisee.
- Payroll Vault clients love that they work directly with their dedicated payroll specialist keeping everything customized and personalized for them.
What are the Franchise Fee, Royalty and Operation Costs?
The Initial Franchise Fee is paid when you purchase your franchise and includes your training. Our monthly Royalty Fee is $400min. or 6%, then scales down as your revenue grows. Monthly fees support payroll software, your website, monthly email newsletter for drip marketing, CRM software, and SEO/Digital fee for internet optimization. Your monthly fees will start in your 4th month of operation when you finish the 90-day launch of your new franchise office and training.
Our Expertise in the Industry
Founded by Sean Manning, CPA in 2008 and launched as a franchise concept in 2012. Our Executive Team has a combined 50 years’ experience in payroll services. We network on many levels to build the brand across the USA. Sean is also a Certified Franchise Executive and Payroll Vault is a member of the International Franchise Association.
Founded by a CPA, Sean Manning owned an accounting firm and was providing payroll services through the firm. He knew this was very inefficient, so he decided to separate payroll out of the accounting firm and run it as its own business. Hence, Payroll Vault founding office was created in 2008. Even in the Sean was featured on the cover of CPA Practice Advisor Magazine for his success with Payroll Vault, our phones started ringing from people wanting to know how he could help them tap into the growing industry of payroll services.
Payroll Vault launched as a franchise concept in the Fall of 2012. We have offices across the United States and are growing rapidly! We are unique for a franchise concept which makes this business opportunity even more exciting. Our Executive Team has over 50 years combined experience.
How is revenue generated?
With our client retention above industry averages, the annuitized revenue makes this business very attractive. Also, no accounts receivable - you get paid when the payrolls run, and very few paper checks are produced as most clients use direct deposit.
Recurring Monthly revenue from payroll processing services, increased Quarterly and Annual revenue from filing of payroll tax forms and W2s. With our client retention above industry averages, the annuitized revenue makes this business very attractive. Also, no accounts receivable - you get paid when the payrolls run.
How do I know what to charge for payroll services?
You can start the business as owner/operator or as absentee owner with a processor and sales person. One experienced full-time payroll specialist can manage an average of 150 clients, and an experienced FULL-TIME sales person can sell an average of 75 clients per year in alignment with industry standards.
What type of businesses makes a good client?
Is there any certification required?
We do not charge a marketing fee. We have all the brochures, flyers, postcards, email and drip marketing campaigns, swag, apparel, and social media support to help you grow your franchise and build the brand in your territory.
What is a Territory?
Territory is a contiguous geographic area that has 10,000 businesses in it. You may purchase an additional 5,000 businesses for $10,000. We use a mapping software program that contains information from the US Census and the territory is zip code driven. In-bound leads (requests for payroll services via the Payroll Vault website) that have your protected zip codes, go to you. Since this business is built on relationship-type style of business development, you can provide payroll service for anyone across the nation making this business scalable from just one location.
Can I open multiple locations?
Do I need a retail buildout?
What are the Franchise Fee, Royalty and Operation Costs?
Who is the ideal Payroll Vault Franchisee?
The Payroll Vault franchise opportunity fits into a lot of different skill sets, but is centered around activities that include operations, sales and management when employees are hired.
- Do you need payroll or accounting experience? No
- Do you need sales experience? No
- Can Payroll Vault be both Owner Operated or Investor Operated? Yes
What are the minimum financial requirements to get started?
- Net Worth of $250,000. This can be in real estate, income, retirement, cash on hand, etc. If you don’t quite have this amount, then you may need to consider bringing in a partner that does, or obtaining financing. You will have to prove net worth in order to get approved for an ACH account through a financial institution so you can provide direct deposit for your clients.
- US Citizenship – You will file payroll taxes on behalf of your clients
- No Bankruptcy under 8 years
- No Legal Issues that would prohibit you from owning this type of financial services business
- Once approved for a franchise, we will do Background and Credit Check and you will be fingerprinted by the IRS.
What does initial training and support look like?
3-day Initial Owner Training at our Corporate Office will cover: Leadership, Ownership, Management of your business. We will focus on sales and marketing so you can be prepared to gain clients.
Operations and learning the software will be done virtually with our trainers over the first several months and as clients are added.
We host a monthly CEO Call for franchise owners and a Sales and Marketing Support Call. Two annual conferences – our Owners Exchange Conference (Payroll Vault owners for 2 days in round table discussions to learn best practices from each other) and our national conference (owners, staff, and vendors attend for 3 days).
Do you finance through Payroll Vault?
Only have these items for incentives and discounts:
- Veterans, Military and First Responder 10% discount off Initial Franchise Fee
- Royalty Rebate & Royalty Reduction Program (Inquire for more details.)
- No Marketing Fee. Our franchisees can invest in their local marketing.
Do you offer incentives or discounts?
- Are there IFF incentives or discounts? Veteran Discount is 10%.
- Royalty Incentives? Yes, Royalty Rebate & Royalty Reduction Program.
- What are the monthly fees? Technology $150, CRM $125, Digital $75
- Is there a Marketing Fee? No, it is recommended franchisee invest in local marketing.