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Run the Payroll Fee Auditor →Blog · Payroll Management · Franchise
Franchise Operations: Payroll Software vs. Managed Payroll Service (2026)
Payroll software gives a franchise the fields; managed payroll gives it someone accountable for filling them correctly, which for franchises means joint employer liability, multi-entity payroll and franchisor reporting requirements configured against the rules cited here rather than left at defaults. 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.
What software leaves to a franchise to get right
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currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded.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.
On April 23, 2026 the Department of Labor published a proposed rule to restore joint employer regulations to 29 CFR Part 791, with comments due June 22, 2026. The preamble states that neither courts nor the Department have applied the FLSA to extend joint employer status to all general contractors and franchisors.
The honest comparison
Software at roughly $40 to $150 a month plus $5 to $12 per employee handles a single-state, all-W-2, hourly-and-salary payroll well, and the customer owns every configuration decision, every deposit and every notice. Managed payroll at $45 per employee per month, with no monthly minimum, owns the configuration, the deposits, the filings and the corrections. For franchises the deciding question is who documents the exemption status of location managers and crew members and who rebuilds the pay codes when the rule changes.
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currently marked Reserved on the eCFR, with the last change dated October 5, 2021 when the 2020 joint employer rule was rescinded.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)]
- On April 23, 2026 the Department of Labor published a proposed rule to restore joint employer regulations to 29 CFR Part 791, with comments due June 22, 2026. The preamble states that neither courts nor the Department have applied the FLSA to extend joint employer status to all general contractors and franchisors. [DOL WHD proposed rule, Joint Employer Status Under the FLSA, FMLA and MSPA (April 23, 2026)]
Read the full guide to fully managed versus self-service payroll, and the rest of the franchise payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What does payroll software get wrong 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.
When is software the right answer for a franchise?
A single state, all W-2, hourly and salary pay, no joint employer liability, and under about 20 employees, where software's lower per-employee cost outweighs what a managed service adds.
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: U.S. Department of Labor: Wage and Hour Division
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