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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Padgett Business Services franchise

Padgett Business Services positions its franchisees as a small-business owner's ongoing advisor — bookkeeping, payroll, and tax work bundled with year-round advisory contact — rather than a seasonal filing service, so client relationships tend to run deeper and longer than a typical once-a-year engagement. That makes the personal handoff between outgoing and incoming owner as important to a Padgett resale as any document: clients who think of the office as "their" advisor need an actual introduction, not just a notice letter.

№ 01.1The Resale, End to End

From offer to ownership

Padgett Business Services resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Conditional offer & client-book review

The offer sets price and terms, conditioned on franchisor consent and a review of which advisory and compliance engagements are actually included in the sale.

1–2 weeks
02

Franchisor application & consent

The franchisor reviews the buyer's background and the deal terms, and may exercise a right of first refusal before the sale can proceed.

3–6 weeks, typically
03

Disclosure considerations

A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement can trigger it even where it's called a private deal.

assessed early, in parallel

Getting to closing

04

Client relationship transition & engagement letters

Because clients typically see the office as a personal advisor rather than a transaction processor, the outgoing owner usually introduces the buyer directly to key accounts alongside reissuing engagement letters in the buyer's name.

2–8 weeks
05

Training & transfer approval

The incoming owner completes the franchisor's accounting-system and advisory-practice training before the franchisor's final sign-off.

1–3 weeks, often overlapping
06

Closing

Funds and the franchise agreement change hands, with the assigned client roster and its recurring billing confirmed as of the closing date.

1 day, once conditions are met
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Padgett Business Services system

CFA Look For A Franchise listing confirms an established Canadian franchise network, CFA member since 2010, in business since 1966

Ontario offices within its established Canadian franchise network of small-business accounting and tax practices

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Padgett Business Services resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
What you buyThe recurring client relationships — bookkeeping, payroll, tax, and advisory engagements — plus office equipment and the existing franchise agreement, subject to consent.The shares of the corporation holding the client book — every engagement it services, and everything it owes.
Franchisor consent & ROFRRequired for the specific practice changing hands — often the pacing condition on the whole deal.Required for the change of control itself, with the franchisor reviewing who is actually taking over.
Client relationship transitionBecause clients often have a personal advisory relationship with the office, a direct introduction period from the outgoing owner is a common, negotiated part of the sale, alongside reissuing engagement letters.The advisory relationship generally continues without individual reintroduction, since the contracting corporation itself doesn't change — though the buyer inherits whatever personal rapport the seller built.
CRA representative authorizationsThe incoming operator secures their own CRA authorizations to file and represent clients — these don't come bundled with the client list itself.The corporation's existing CRA registrations and authorizations generally continue, since the entity doesn't change.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical useThe default for a single office's practice changing hands.Less common — sometimes used where an operator holds several offices under one company.
What you buy
Asset sale

The recurring client relationships — bookkeeping, payroll, tax, and advisory engagements — plus office equipment and the existing franchise agreement, subject to consent.

Franchisor consent & ROFR
Asset sale

Required for the specific practice changing hands — often the pacing condition on the whole deal.

Client relationship transition
Asset sale

Because clients often have a personal advisory relationship with the office, a direct introduction period from the outgoing owner is a common, negotiated part of the sale, alongside reissuing engagement letters.

CRA representative authorizations
Asset sale

The incoming operator secures their own CRA authorizations to file and represent clients — these don't come bundled with the client list itself.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

Typical use
Asset sale

The default for a single office's practice changing hands.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Padgett practice changing hands between one buyer and one seller, with a negotiated client-introduction period and a standard franchisor consent process.

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A bit more involved

A larger or more complex deal

An operator selling several Padgett offices as one operating company, or a resale where a meaningful share of long-tenured advisory clients need direct reassurance before the price is finalized.

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Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.6Before You Ask

Common questions

How is buying a Padgett practice different from buying a bookkeeping-only franchise?

Padgett bundles bookkeeping, payroll, and tax work with an ongoing advisory relationship, so clients tend to see the office as "their" business advisor rather than a service they use once a year or hand off transactionally. That means client retention through a sale depends as much on a genuine introduction from the outgoing owner as it does on reissuing engagement letters.

Do I need to be an accountant to buy a Padgett Business Services practice?

This depends on the specific compliance and advisory services the practice offers and how you plan to staff it — some work may require a client's own professional oversight regardless of who owns the franchise. We review the practice's actual service mix with you to confirm what's needed.

How much does the personal relationship between the outgoing owner and clients actually matter?

More than in a typical tax-prep or bookkeeping resale — because Padgett positions itself around year-round advisory contact, a client who's used to calling one person directly may need real reassurance that the relationship continues, not just a notice that ownership changed. A negotiated transition period where the outgoing owner introduces key clients is common.

Does buying an existing Padgett office mean I skip franchise disclosure?

Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in matching a buyer to a seller can trigger a full disclosure requirement regardless of how the deal is framed.

Does the brand's long history in Canada change how the resale process works?

A long-established system usually means more standardized software, procedures, and franchisor administration around a resale, which can make the process more predictable — but it doesn't change the underlying steps: franchisor consent, client relationship transition, and your own CRA authorizations are still required regardless of the brand's age.

Related

Where we close franchise resale deals

Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Padgett Business Services or its franchisor.

Ready to begin?

Tell us about your Padgett Business Services resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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