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Run the Payroll Fee Auditor →Blog · Payroll Management · Franchise
Franchise Operations: Setting Up Direct Deposit (2026)
Direct deposit for a franchise is set up once per employee with a bank authorization, prenoted, then paid through ACH on the pay schedule the state allows, with joint employer liability and multi-entity payroll settling on the same file. BEG runs franchise payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Setup for franchises
Each employee signs a direct deposit authorization with routing and account numbers, the account is prenoted with a zero-dollar test before the first live deposit, and split deposits are recorded per employee. Federal law does not let an employer make direct deposit mandatory to a bank of the employer's choosing, and most states require a paper or pay card alternative for employees who do not opt in.
The Department of Labor's FLSA joint employer regulation at 29 CFR Part 791 is currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded. There has been no DOL joint employer regulation in force since then.
Timing and the franchise pay cycle
The ACH file goes two banking days before payday for the funds to land on the date, which means hours for location managers and crew members close earlier than the payday itself, and joint employer liability for the period is settled on that file or on a documented later settlement date. Off-cycle runs, final checks and corrections use same-day ACH where the bank supports it.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- The Department of Labor's FLSA joint employer regulation at 29 CFR Part 791 is currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded. There has been no DOL joint employer regulation in force since then. [29 CFR Part 791 (eCFR, as of September 10, 2026)]
Read the full guide to how to set up direct deposit, and the rest of the franchise payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
Can a franchise require direct deposit?
Federal Regulation E bars an employer from requiring deposit to a particular bank; the employee chooses the account. Many states add that a no-fee alternative must be offered, so a written opt-in with an alternative is the safe policy.
When does the franchise pay file have to be released?
Two banking days before payday for standard ACH. Same-day ACH is available for off-cycle runs and corrections at a higher per-item cost. The Department of Labor's FLSA joint employer regulation at 29 CFR Part 791 is currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded.
What does managed payroll cost for a franchise?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Joint employer liability, multi-entity payroll and franchisor reporting requirements are configured at setup, not billed as add-ons.
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 $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: IRS: Understanding Employment Taxes
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