Franchise Evaluator™: Payroll Vault

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

Payroll processing is one of the top three most outsourced services in the US. Payroll Vault technology workforce management platform helps franchisees capitalize on this rapidly expanding industry. With 30 million businesses in the United States contributing to a $47 billion market, this sector represents significant opportunities. Interested parties can explore franchise or licensing opportunities with Payroll Vault. They are particularly suited for existing accounting firms. This is an opportune moment to engage with an emerging leader in full-service payroll and shape a professional career within a thriving industry.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

In the United States, small businesses are pivotal, generating 65% of new jobs, with 97% of these businesses employing fewer than 100 employees. Due to frequently changing regulations at various government levels, these small businesses require reliable, local providers capable of offering personal and consultative workforce management services.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Utilizing a proprietary payroll management system, once a customer and their employees are set up, the payroll processing and franchisees billing happens automatically. So there are no collections, or outstanding receivables. Payroll management is a service that is very sticky, meaning people do not change payroll providers very often.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

Competition from other payroll providers and other financial and accounting product service providers may be present in any given market. Given the large size of the small and mid-sized business sector, with many new businesses opening yearly, there does not seem to be an issue of finding clients. Building relationships with business owners will be key. Payroll Vault helps small businesses be more successful by supporting them with payroll and workforce management services that aid them in managing their employees, their business, and most importantly, keeping them compliant. Client-Focused & Technology Driven, Payroll Vault is a boutique style full service payroll and workforce services company designed for small business.

We categorize the competitive climate as mid-high competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

The dynamic nature of compliance standards, driven by legislative changes, keeps payroll among the top three outsourced business services. Payroll Vault monitors the frequently changing payroll compliance standards, helping companies avoid penalties related to payroll and workforce management.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

Payroll Vault is the first to successfully Franchise payroll and workforce services. Payroll Vault offers a robust franchise experience backed by an Executive Team with over 50 years of combined expertise in payroll, accounting, human resources, and business services. As a member of the International Franchise Association, Payroll Vault is actively engaged in the broader business community, with its Executive Team participating in multiple national and local Boards of Directors. Leading the company is Sean Manning, CPA/CEO/Founder, who is also a Certified Franchise Executive (CFE), ensuring a high standard of leadership. The franchise’s commitment to excellence is further demonstrated by its corporate trainers, who are Certified Payroll Professionals (CPP), providing franchisees with expert guidance and support.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

Payroll Vault’s Executive Leadership Team brings decades of payroll and franchise expertise to provide comprehensive training and support for franchisees. As a company dedicated to assisting small to medium- sized businesses, Payroll Vault specializes in delivering payroll and workforce management services. These crucial services empower business owners to effectively manage their employees, streamline operations, and ensure compliance with relevant regulations. Sean Manning, CEO & Founder is an experienced entrepreneur, CPA and CFE. Tricia Petteys, COO & Co-Founder is a payroll systems expert with areas of expertise in operational systems and is a speaker, motivator, and visionary. Jessica Martin is the current Marketing Director, managing all communications and public relations.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

The ideal candidate for Payroll Vault possesses a background in business, marketing, or sales, with accounting and payroll experience being beneficial but not required. An understanding of the franchising model and willingness to follow a systemized process are essential. This opportunity suits individuals who enjoy operations or business development, have attention to detail, and are passionate about supporting their local business community, particularly small businesses.  Starting as an owner/operator is ideal, with the potential to grow into a semi-absentee or absentee role. This model is also suitable for business owners looking to add another business to their portfolio.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

Metric Collective invested in Payroll Vault in 2023 after realizing the market need and enormous upside potential available in their innovative franchise model. In 2023, Payroll Vault franchises demonstrated varied financial performance across different locations. A detailed financial analysis of the franchises reveals a range of gross revenue and expenses, reflecting the diverse operational scales and market engagement.  The financial data underscores the scalability and potential profitability of Payroll Vault franchises, while also indicating the importance of effective expense management and market strategies. Overall, the financial health of Payroll Vault franchises in 2023 reflects both the opportunities and challenges inherent in the payroll services industry.

We categorize the Financial Health as Sound.