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Run the Payroll Fee Auditor →Blog · Payroll Management · Franchise
Franchise Operations: Payroll Software vs. Managed Payroll Service (2026)
Franchise operations evaluating payroll options typically compare managed payroll service against payroll software. Here is the honest comparison.
Managed payroll service (like BEG) means a provider processes payroll for you. You submit hours and changes; they handle the rest including tax deposits, compliance, and year-end forms.
Payroll software (Gusto, ADP Run, Paychex Flex) means you run payroll yourself using a platform. You are responsible for configuring it correctly and keeping up with compliance changes.
Side-by-Side Comparison for Franchise Operations
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Joint employer liability setup | Configured for you | You configure |
| Tax deposits | Handled | You are responsible |
| Compliance updates | Applied automatically | Your responsibility |
| Multi-state filing | Included | Varies by plan |
| Year-end W-2s | Included | Included or add-on |
| Payroll errors | Provider corrects at cost | Your cost to fix |
| New hire onboarding | Handled | You set up |
Which Is Right for Franchise Operations?
For most franchise operations under 100 employees, managed payroll wins on total cost and compliance coverage. The tradeoff -- giving up direct software access -- is outweighed by removing the compliance risk that comes with self-managing joint employer liability, multi-entity payroll, franchisor reporting requirements, high turnover.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Franchise Operations payroll compliance, prefer hands-on control, and have a low tolerance for vendor dependency. These are real advantages, but they come with real responsibility.
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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