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State Retirement Mandate Compliance

Attention Franchise Owners: Your Franchisor's Plan Doesn't Cover You

Franchise operators are independent employers subject to state retirement mandates — regardless of what the franchisor offers. Each location may need its own compliant plan.

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Why It Matters

The Challenges Franchise Owners Owners Face

Most state mandates impose fines of $250–$500 per employee per year for non-compliance. The good news: setting up a qualifying retirement plan exempts you immediately — and federal SECURE 2.0 tax credits can offset up to $15,000 of your startup costs.

Flat-Fee Pricing

No AUM Minimums. One Flat Fee.

Unlike commission-based advisors, we charge a single flat fee — no percentage of assets, no hidden costs. SECURE 2.0 credits can cover most or all of your first three years.

Business Size Setup Fee Annual Flat SECURE 2.0 Credits
5–15 employees $1,500 $600/yr up to $15,000
16–30 employees $2,500 $900/yr up to $15,000
31–75 employees $3,500 $1,500/yr up to $15,000

*SECURE 2.0 Act credits available to employers with 100 or fewer employees. Credits apply to startup costs for the first 3 years. Consult a tax advisor for specifics.

How It Works

Get Compliant in 3 Simple Steps

1

Free Compliance Audit

We review your state's mandate requirements, your employee count, and your current retirement setup — at no cost.

2

Custom Plan Design

We design a flat-fee retirement plan optimized for your business size, budget, and owner contribution goals.

3

File State Exemption

We handle the mandate exemption filing and ensure you maximize your SECURE 2.0 federal tax credits — often worth $5,000–$15,000.

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Frequently Asked Questions

Franchise Owners Retirement Plan FAQs

If I own a franchise, am I subject to my state's retirement mandate?
Yes. As a franchise owner, you are the employer of record for your employees — not your franchisor. This means you are independently subject to your state's retirement mandate, just like any other small business owner. The mandate applies regardless of your franchise brand or industry.
I own 3 franchise locations — do I need a separate plan for each?
Not necessarily. If your locations share a common ownership structure (e.g., one LLC or S-Corp owns all three), you may be able to use a single retirement plan with a common employer identification. However, if each location is a separate legal entity, each may need its own plan. We'll review your ownership structure during the free audit.
Does my franchisor's corporate retirement plan cover my employees?
Almost always no. The vast majority of franchise agreements explicitly state that franchise employees are not employees of the franchisor and do not participate in corporate benefit plans. You should verify this with your franchise disclosure document (FDD), but the default assumption should be that you need your own plan.
What's the flat fee to set up a plan for a 15-employee franchise location?
For a single franchise location with 5–15 employees, our fee is $1,500 setup + $600/year. With SECURE 2.0 credits of up to $5,000/year for 3 years, your net out-of-pocket cost in year 1 is typically $0. If you own multiple locations, we can often bundle them for efficiency.
Can franchise owners maximize their own retirement savings with a private plan?
Absolutely. A Solo 401(k) or profit-sharing plan structured for the franchise owner personally can allow contributions up to $66,000–$73,500/year (2024 limits), dramatically reducing your taxable income. This is one of the most underutilized tax strategies for franchise operators earning $150k+.

Ready to Get Compliant?

Book a free 20-minute compliance audit. We'll tell you exactly what your state requires, what it costs, and how federal tax credits can cover most of it.

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Helpful Resources

States with Active Mandates

New Jersey New York California View All States →

Local Coverage

Toms River, NJ Niagara Falls, NY Palm Springs, CA

Other Resources

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