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Franchise Operations: Managed Payroll for Small Businesses (Under 25 Employees) (2026)
Managed payroll for a small franchise is a complexity decision, not a headcount one: under 20 employees the $500 monthly minimum makes software cheaper, unless joint employer liability or a second state is in the picture. BEG runs franchise payroll for $25 per employee per month in your existing platform or $45 on isolved, all-inclusive, live in 3 to 5 business days.
Where the small franchise sits against the minimum
At $25 per employee per month the $500 monthly minimum binds below 20 employees, so a 10-person franchise pays $500, an effective $50 per employee, and a 20-person one pays $500. Payroll software at roughly $40 to $150 a month plus $5 to $12 per employee is cheaper at that size for a single-state, all-W-2, hourly-and-salary payroll. The question is whether this franchise is that payroll.
The complications that decide it for franchises
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currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded.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.
Joint employer liability, multi-entity payroll, franchisor reporting requirements and high turnover: each is a pay code that self-service software ships blank, and each is a place a small franchise with no payroll specialist gets it wrong for years before an audit or a wage claim finds it. One of these, or an employee in a second state, or a first garnishment order, is the point where the managed price stops being a premium.
What a small franchise is already subject to
Below 50 employees the federal lines already crossed are e-filing at 10 information returns, OSHA logs at 11 unless the industry is on the exempt list, Title VII and the ADA at 15, and the ADEA and COBRA at 20. None of them wait for a payroll department to exist.
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currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded.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 managed payroll by company size, and the rest of the franchise payroll library.
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
Is managed payroll worth it for a franchise under 20 employees?
Only when there is a complication: joint employer liability, a second state, a garnishment, or a classification question about location managers and crew members. Otherwise the $500 minimum makes software the better price and this page says so.
What does a 10-person franchise pay?
$500 a month, the monthly minimum, all-inclusive. The $25 rate takes over at 20 employees.
Which franchise rule most often breaks a self-service setup?
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.
What does managed payroll cost for a franchise?
$25 per employee per month inside your existing platform or $45 on BEG's isolved HCM, all-inclusive, with a $500 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 $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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