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Franchise Operations: Managed Payroll for Mid-Size Businesses (25-100 Employees) (2026)
Managed payroll at $25-$45 PEPM all-inclusive makes economic sense at nearly every size for franchise operations, but the specific value drivers differ depending on headcount.
Payroll at Different Sizes for Franchise Operations
| Franchise Operations Size | Monthly Cost | vs. In-House Hire |
|---|---|---|
| Single unit | $250-$450/mo | Save $53K-$83K/yr |
| 3-5 unit franchisee | $750-$2,250/mo | Save $45K-$73K/yr |
| 10+ unit franchisee | $2,500-$9,000/mo | Save $20K+/yr |
The comparison is against an in-house hire at $55,000-$85,000 fully loaded to $57K-$88K per year.
Under 25 Employees: The Clearest ROI
For franchise operations under 25 employees, in-house payroll cannot be justified. A payroll coordinator costs $55,000-$85,000 fully loaded -- compared to $625-$1,125/month for managed payroll. The savings pay for a year of managed payroll in the first 2-3 months.
25-75 Employees: Complexity Drives the Case
In the 25-75 employee range, franchise operations are dealing with more joint employer liability, multi-entity payroll, franchisor reporting requirements, high turnover. An in-house generalist is less likely to have the depth needed in these areas. Managed payroll provides specialist coverage that reduces exposure.
75-200 Employees: Hybrid Approaches Emerge
At 75+ employees, franchise operations often consider a hybrid approach: an HR generalist handles employee relations and benefits while a managed payroll provider handles the compliance-heavy payroll function. This keeps an internal HR presence while outsourcing the most technically complex piece.
How to Get a Quote for Your Franchise Operations
BEG quotes managed payroll based on your actual headcount and pay frequency. For most franchise operations, the first discovery call includes a custom cost comparison against your current setup.
Managed Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
How do you protect me from joint employer liability with the franchisor?
Using a third-party payroll provider that processes payroll independently from the franchisor's systems helps establish operational separation. We document that payroll decisions are made at the franchisee level.
Can you handle payroll for multiple franchise units?
Yes. Multi-unit franchisees run all locations on a single account with individual cost centers per unit and unit-level labor cost reporting.
How do you handle different minimum wage rates across states?
Each location is set up with the applicable state and local minimum wage. Our compliance calendar tracks minimum wage changes and flags upcoming rate increases.
What does BEG charge for franchise payroll?
Franchise payroll runs at $25-$45 per employee per month. For a 5-unit franchisee with 50 total employees, that is $1,250-$2,250 per month covering all locations, tax filing, and year-end W-2s.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Franchise Operations. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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