Section 125 Plans for QSR and Restaurant Franchises
For employers with 50+ employees
Quick-service and restaurant franchises are one of our largest groups of clients. Large hourly crews, several locations and steady turnover are exactly where a Section 125 plan pays off.
Why Section 125 Fits Quick-Service Restaurants
- Large hourly crews: A typical franchise group employs dozens of crew members per location. Savings are per employee, so they grow with every person on payroll.
- Multiple locations: Owners with multiple locations can count employees across their locations to meet the 50-employee minimum.
- Turnover: Every employee is automatically enrolled and free to opt out, so the plan keeps working as crews change.
- A benefit crews notice: Higher take-home pay and no-copay virtual care give your crew a reason to stay, at no cost to you.
What the Program Delivers
- Employer savings: most employers save $650–$850 per employee per year in payroll taxes
- Employee take-home pay: typically rises about 4–6%, with the same gross pay
- Cost: no setup fee, no minimum contract, and no out-of-pocket cost — the fee is paid from the savings
- Enrollment: every employee is automatically enrolled and free to opt out
- Existing coverage: your current health plan stays exactly as it is
Estimated Annual Savings in Quick-Service Restaurants
| Workforce | At $650/employee | At $850/employee |
|---|---|---|
| 50 employees | ~$32,500/yr | ~$42,500/yr |
| 150 employees | ~$97,500/yr | ~$127,500/yr |
| 300 employees | ~$195,000/yr | ~$255,000/yr |
Estimates use $650–$850 in employer payroll tax savings per employee per year. Calculate your own number.
Getting Started
The program works with the payroll systems restaurants use most, including Toast, ADP and Paychex.
Setup takes 30–60 days in five steps, with no setup fee and no minimum contract. The program requires at least 50 employees and is available in 40 states (see state availability).
Frequently Asked Questions
Does a Section 125 plan work for a restaurant franchise?
Yes. QSR and restaurant franchises are among our largest client groups. The program requires at least 50 employees, and owners with multiple locations can count employees across their locations.
Does it work with Toast payroll?
Yes. The program works with all major payroll systems, including Toast, ADP and Paychex.