Franchise Deep Dive: Payroll Vault’s Franchise Costs, Fees, Profit and Data

Payroll Vault is a franchise that provides entrepreneurs with the opportunity to start their own full-service, local payroll business with the support of a team of experts and a nationally recognized brand.

How Many Payroll Vault Locations Are There?

Payroll Vault was founded by Sean Manning, who is also the owner of Manning & Company, P.C., a mid-sized accounting, tax and advisory firm located in Littleton, Colorado. Manning began his accounting career with his father’s firm Robert C. Manning, P.C. in 1990. In 1998, he purchased the firm from his father and rebranded it as Manning & Company, P.C.

Manning launched Payroll Vault in 2008 when he saw how the payroll service industry was under-serving business owners. He developed Payroll Vault to serve the specific payroll service needs of business owners and their employees. And as demand grew, the firm began to focus on web-based technology to serve employers and their employees efficiently.

In 2012, Payroll Vault Franchising, LLC was created to offer franchise opportunities to entrepreneurs who shared their vision. Through strong national and local business connections, the company grew to become a national leader within the independent payroll service providers industry. Today, there are over 65 Payroll Vault locations across all 50 states.

What Is the Payroll Vault Business Model?

At Payroll Vault, each franchise office operates as a full-service, boutique-style payroll services company. Marketing, sales, branding and payroll processing are managed by each franchisee in their local office. This is designed to keep everything in the community for clients and makes franchise owners the go-to expert in their local area for payroll services. Payroll Vault clients will work directly with their dedicated payroll specialist to keep everything customized, localized and personalized for them.

Along with payroll processing, Payroll Vault has a suite of Workforce Management Services that become additional revenue for the franchisee, including:

Human Resources
Labor Poster Program
Pay-As-You-Go Workers Compensation
Pay Card
Time and Attendance
Scheduling

Payroll Vault provides a pricing structure with the flexibility to modify based on the location of each territory.

Franchisees can launch the business as an owner/operator or as an absentee owner with a processor and sales person. One experienced full-time payroll specialist can manage an average of 150 clients, while an experienced full-time salesperson can sell an average of 75 clients per year.

Typically, marketing focuses on small businesses, or companies that have 100 or less employees. Payroll Vault’s niche is companies with one to 25 employees. However, the software can manage companies with several hundred employees.

Notably, there are no required certifications to be a Payroll Vault franchisee. Once someone becomes a franchise owner, the franchise provides complimentary access to the American Payroll Association basic training. The training will provide additional and valuable knowledge and terminology about the payroll industry.

How Much Can Payroll Vault Franchise Owners Make?

Earnings for Payroll Vault owners are not publicly available. However, franchisees benefit from recurring, annuitized revenue in a scalable business model that compounds growth year over year. Franchisees are paid when payrolls are processed.

Three streams of revenue include:

Monthly — payroll and workforce management services
Quarterly — filing of quarterly payroll client taxes
Annually — W-2 and 1099 forms

How Much Does It Cost To Open a Payroll Vault?

Financial information for Payroll Vault includes:

Initial Franchise Fee $56,000
Royalty Fee $400 min per month or 6%

If franchisees choose to purchase a larger territory at the outset, there are two options:

For a territory with a total of 7,500 businesses, you will pay an additional $10K, or a total franchise fee of $66K.
For a territory with a total of 10,000 businesses, you will pay an additional $20K, or a total franchise fee of $76K.

Operational and marketing fees will start the third full month after your opening date.

What Is the Franchise Fee for Payroll Vault?

The franchise fee ranges from $56,000 to $76,000.

Who Is the Leadership of Payroll Vault?

Sean Manning — Founder, CEO
Marilyn Manning — Director of Franchise Development
Douglas Holsted — Vice President
Jessica B. Martin, CFE — Chief Marketing Officer
Callie Christiansen — Marketing Coordinator
Alissa Perdue — Operations and Training Support

What Helpful Articles Can I Read to Learn More About Payroll Vault?

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