How should the merchant accounts be structured and named for franchisees?

Merchant accounts can be structured in different ways

  • One merchant account per store
  • One merchant account for all stores

 

Please note:

Only one payout account (PA) can be attached to a merchant account (MA). This means that revenues of multiple stores under a single MA will necessarily have to be paid out to the same.

Example:

  • 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. 

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There can only be multiple stores under one MA if the stores operate under the same Legal Entity.

 

To name the franchisees merchant account:

This is discussed during the onboarding of a new franchisor. To understand which format would work best for your purpose, reporting and integration, discuss this with your onboarding specialist. Often, MAs will include letters indicating the brand and the country. They will also likely include things such as the store number, and the name of the franchisee operating the account. 

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