How should the merchant accounts be structured and named for franchisees?
Merchant accounts for franchisees
Merchant accounts can be set up in 2 ways:
- One merchant account per store.
- One merchant account for all stores.
Note: Only one payout account can be attached to a merchant account. This means that the revenues of multiple stores under a single merchant account will have to be paid out to the same account.
- An individual owns 7 stores but wants to be paid out to a single payout account: Only one merchant account needs to be created.
- An individual owns 7 stores but wishes to be paid out to an individual payout account: They need to create a merchant account for all stores.
Tip: Having multiple stores under the same merchant account is possible only when the same legal entity owns all stores.
Name the franchisee merchant account
When onboarding a new franchisee, discuss reporting and integration to see which format fits your needs.
Consider adding letters indicating:
- store number
- name of the franchisee operating the account.