RatesReady automatically pulls up to date location and insurance data to calculate the right rate for each of your locations — so you are never overpaying or underpaying based on a national average.
Address-level precision
RatesReady automatically pulls up to date location and insurance data to calculate the right rate for each of your locations — so you are never overpaying or underpaying based on a national average.
Monthly rate refresh
Rates update monthly using current gas pricing models and carrier data. Your admin gets a clean summary every month so you always know where things stand.
IRS-compliant AI-powered rates
RatesReady is built on IRS-compliant methodology backed by years of industry experience, powered by sophisticated AI modeling that continuously incorporates the latest insurance, fuel, vehicle, and depreciation data — delivering the most up-to-date and comprehensive per-mile rates on the market.
19 vehicle classes
New, old, and used — sedans, SUVs, trucks, and EVs across three model year ranges. Every driver gets the rate that matches their vehicle.
SMS driver onboarding
Drivers onboard in 3 text messages — name, license photo, VIN photo. No app download required. Annual MVR checks run automatically.
Full audit trail
Every rate change, MVR check, and compliance action is timestamped and logged. IRS audit-ready from day one.
Browse by state
Rates across all 50 states
Select your state to see how location-specific rates compare to the IRS flat rate in your market.
Browse by delivery type
Find your franchise category
Savings vary by vehicle mix, driver miles, and market. See estimates for your specific delivery type.
Get started
Request a demo
Tell us about your operation and we will be in touch within one business day.
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About RatesReady
The reimbursement platform built for franchise operators
Franchise delivery operators are caught in a compliance trap. The IRS flat rate of $0.76/mile is the easy answer — but it is almost never the right one. It overestimates what driving actually costs in your specific markets, which means you are paying drivers more than you have to, or worse, underpaying and creating wage liability.
RatesReady was purpose-built for pizza and delivery franchise operators — from single-location owner-operators to large multi-unit franchisees running dozens of stores. We give you a location-specific per-mile reimbursement rate for every store address — built on IRS-compliant methodology, powered by AI that keeps every data input current, and backed by the kind of deep industry experience that makes these rates the most comprehensive available at any price point.
The experience is built to match your actual workflow: operators manage everything from one dashboard, drivers onboard in three text messages, and compliance status is visible at a glance across your entire portfolio.
Why franchises choose RatesReady
01
IRS-compliant from day oneEvery rate is built on IRS-compliant methodology and includes all six cost components — insurance, depreciation, fuel, maintenance, registration, and taxes — calculated at your store's address by AI that keeps every input current and accurate.
02
Location-specific accuracyA one-size-fits-all flat rate is always wrong for someone. RatesReady calculates the right rate for each of your locations based on actual local insurance costs and vehicle data — not a national average.
03
Best-in-class operator experienceThe dashboard is built for busy operators, not HR departments. Your entire fleet — rates, compliance, driver records, and audit trail — in one place, accessible in seconds.
04
Drivers onboard in three textsNo app download. No portal login. Drivers reply to a text with their name, license photo, and VIN. That is the entire onboarding process — and it takes under five minutes.
Why franchises need this
Three reasons operators switch to RatesReady
The IRS flat rate is the default — not the right answer. Here is what changes when you switch.
Save money
Up to $6,500 saved per driver, per year
The IRS rate of $0.76/mile is a national average. Your actual rate depends on insurance costs, gas prices, and vehicle depreciation in your specific market. In most suburban markets the gap is $0.20–$0.33/mile — at 20,000 miles that is $4,000–$6,600 per driver, compounding across your fleet.
39%
avg savings
Stay compliant
Built on IRS-compliant methodology, from day one
RatesReady is built on IRS-compliant methodology backed by deep industry experience and sophisticated AI modeling. Every rate component is calculated and documented automatically — so if a driver files a CA 2802 claim or a 6th Circuit-style lawsuit, you have a complete, current, IRS-grounded record ready to go.
100%
IRS compliant
Retain drivers
A better deal for the people doing the work
Drivers know when they are underpaid. A documented, location-specific rate shows your team you have done the math — and gives you a real answer when they ask why their reimbursement changed. Transparency builds retention.
3 min
to onboard
Savings calculator
See your savings
Simple, transparent pricing
Pay per location. Not per driver.
Unlimited drivers per location. No per-seat fees. Annual contracts — request a demo to get started.
IRS 2026 standard mileage rate: $0.76/mile · RatesReady avg Michigan rate: $0.44/mile · Your savings: up to 39%
STARTER
$49
per location / month
For single-location owner-operators and small multi-unit franchisees getting started.
✓Address-level delivery rates — 9 vehicle classes
✓Monthly rate refresh + email notification
✓CSV export — IRS audit-ready format
✓Basic compliance checklist
✓90-day audit trail
—MVR checks
—SMS driver onboarding
Most popular
COMPLIANCE
$79
per location / month · includes 2 MVR checks/yr
Includes 2 MVR checks per driver per year (avg $11/check value).
✓Everything in Starter
✓SMS driver onboarding — name, license, VIN in 3 texts
✓2 MVR checks per driver per year included
✓Full compliance dashboard
✓Unlimited audit trail
✓Admin alerts — expiry warnings, compliance flags
—Continuous MVR monitoring
ENTERPRISE
Contact us
Custom pricing · Multi-unit & enterprise
Association pricing for franchise groups and multi-unit operators.
✓Everything in Compliance
✓Continuous MVR monitoring
✓Unlimited MVR checks
✓Custom rate engine configuration
✓Dedicated support + onboarding
Full comparison
Everything you need, nothing you do not
Feature
Starter $49/loc
Compliance $79/loc
Enterprise Contact us
RATE ENGINE
Address-level delivery rates
✓
✓
✓
Vehicle classes
19
19
19
Monthly rate refresh
✓
✓
✓
CSV export
✓
✓
✓
COMPLIANCE
Compliance checklist
Basic
Full
Full
Audit trail
90 days
Unlimited
Unlimited
License + insurance tracking
—
✓
✓
DRIVER MANAGEMENT
SMS driver onboarding
—
✓
✓
MVR checks / driver / year
—
2
Unlimited
Continuous MVR monitoring
—
—
✓
Drivers per location
Unlimited
Unlimited
Unlimited
PLATFORM
Multi-franchise dashboard
✓
✓
✓
Support
Email
Email + chat
Dedicated
The math
RatesReady pays for itself in weeks
At 4 drivers per location doing 20,000 miles/year, switching from the IRS $0.76 rate to a location-specific rate saves $1,160–$6,600/driver/year depending on your market.
$0.76
IRS rate 2026 (record high)
$0.44
Avg Michigan delivery rate
$1,160
Savings per driver / yr
3 wks
To break even on Compliance plan
FAQ
Common questions
Do I have to switch? Can I just use the IRS rate?
You can use $0.76/mile — but it means overpaying every driver at a national average rate. RatesReady calculates the actual cost in your market. In most suburban markets that is $0.20–$0.33 less per mile than the IRS flat rate.
What does "unlimited drivers" mean?
You pay per location, not per driver. 2 drivers or 12 — same price. Other platforms charge per driver per month, which adds up fast. With RatesReady, your cost is fixed per location regardless of how many drivers you add.
Why did the IRS rate go up in 2026?
The IRS raised the standard mileage rate from $0.70 to $0.76 — the highest it has ever been — reflecting higher insurance, fuel, and depreciation costs nationally. This makes RatesReady more valuable: the gap between the IRS flat rate and your actual location cost just got larger.
How does the contract work?
RatesReady is sold on annual contracts. Pricing is set per location and locked for the term. To get started, request a demo and we will walk you through the program, confirm your locations, and scope the right plan for your operation.
RatesReady
Case studies
See the real numbers behind location-specific rates
Two detailed case studies — pizza delivery in Michigan and pharmacy delivery in California. Enter your work email to access.
No spam. Used only to send relevant RatesReady updates.
Real operators · Real results
What location-specific rates look like in practice
Two franchise operators. Two markets. The same question: are we overpaying our drivers?
Case study 01
Detroit-Area Pizza Franchise Cuts Reimbursement Costs by 38%
A 6-location Domino's operator in the Detroit metro was reimbursing all drivers at the IRS flat rate — not knowing the actual delivery rate cost in their markets was nearly 40% lower.
Locations
6
Wayne & Oakland County
Drivers
24
W-2, avg 22,000 mi/yr
Annual savings
$63K
vs. IRS $0.76/mi rate
Payback period
3 wks
RatesReady ROI
The problem
Paying the IRS rate felt safe. It was not cheap.
The operator had been reimbursing all 24 drivers at $0.76/mile. The IRS rate is the industry default — and it felt like the right thing to do. But the IRS rate is a national average. For a delivery operator in Canton and Plymouth, Michigan, the actual delivery rate cost was nearly 40% lower.
At 24 drivers doing 22,000 miles each, the operator was spending $382,800/year on mileage. The delivery rate said they should be spending $319,600. The gap was over $63,000/year — money leaving the business with no compliance benefit in return.
The legal context
The 6th Circuit changed the calculus in 2024.
In March 2024 the 6th Circuit ruled in Parker v. Battle Creek Pizza that pizza franchisees cannot rely on flat-rate reimbursements or loose reasonable approximations. The ruling covers Michigan, Ohio, Kentucky, and Tennessee. The court made clear that the risk of financial harm from borderline reimbursements falls entirely on the employer.
Using the IRS flat rate is common — but it is a national average, not a documented location-specific calculation. RatesReady uses IRS-compliant methodology powered by AI to calculate the actual cost of driving at your store's address, producing a documented output updated every month. That is what protects operators when questions arise.
Location-by-location rate comparison
Adjust the sliders to model your own driver count and annual miles.
Drivers per location 4
Miles per driver / yr 22,000
Location
ZIP
delivery rate Rate
IRS $0.76
Savings/mi
Annual savings
Total annual savings across all 6 locations
vs. IRS $0.76/mile
$63,206
How the rollout happened
Week 1
Demo & rate confirmation
RatesReady pulled confirmed rate baselines for all 6 ZIP codes. Operator reviewed rates with their accountant. No surprises.
Week 2
Contract signed, driver onboarding begins
Annual contract at $79/location/month. 24 drivers onboarded over 3 days via SMS — name, license photo, VIN photo.
Week 3
First location-specific reimbursements processed
Payroll updated to delivery rates. Drivers received rate transparency documentation explaining their vehicle class and location-adjusted rate.
Month 2
MVR checks complete, compliance dashboard live
All 24 drivers cleared MVR review. Full audit trail exported for accountant records.
Ongoing
Monthly auto-refresh, zero admin
Rates update automatically every month. New hires onboard via the same 3-text SMS flow.
"I had no idea we were overpaying by that much. The IRS rate seemed like the safe choice — turns out it was just the expensive one."
Franchise Operator · 6 Domino's locations, Wayne County, Michigan
$63K
Annual savings in mileage reimbursement
3 days
To onboard all 24 drivers via SMS
100%
IRS-compliant AI-powered rates from first payment
See your locations' rates
We will pull the confirmed delivery rate for each of your locations at no charge.
Case study 02
California Pharmacy Chain Achieves Full delivery rate Compliance Across 8 Locations
An independent pharmacy group operating 8 delivery locations across LA and Orange County needed a reimbursement program built on IRS-compliant methodology that could hold up under California's aggressive wage enforcement environment.
Locations
8
LA & Orange County
Drivers
32
W-2, avg 25,000 mi/yr
Annual savings
$58K
vs. prior flat rate
Compliance risk
Closed
Full audit trail active
The problem
California's wage laws made their old approach untenable.
California Labor Code Section 2802 requires employers to indemnify employees for all expenses incurred in performing their duties. For delivery drivers, that means actual vehicle costs — not a national average. The pharmacy group had been reimbursing at $0.60/mile, above the IRS rate, which they believed would protect them.
Under California law the question is not whether you paid the IRS rate. It is whether you reimbursed actual costs. With 32 drivers running stop-and-go urban routes across LA, their actual vehicle costs were measurably higher — and they had no documentation proving otherwise.
The California context
The most aggressive wage enforcement environment in the country.
California's Labor Commissioner actively audits employer expense reimbursement practices. Class action attorneys have made delivery driver reimbursement a priority target since 2020. For an 8-location operator with 32 drivers — at $0.10–$0.15 underpayment per mile over 2–3 years — the exposure runs into six figures easily.
delivery rate addresses California's actual costs standard directly. It calculates insurance from local carrier filings, fuel from regional EIA data, and depreciation from IRS vehicle schedules. The audit trail RatesReady produces is exactly what a California employer needs in a Labor Commissioner investigation.
California location rate comparison
California insurance costs vary significantly by ZIP. Adjust your prior rate to see your specific savings.
Drivers per location 4
Miles per driver / yr 25,000
Your current rate ($/mi) $0.60
Location
Area
delivery rate Rate
Your Rate
Savings/mi
Annual savings
Total annual savings across all 8 locations
vs. your current rate — plus full CA Labor Code 2802 compliance
$58,400
How the rollout happened
Week 1
Legal review & rate modeling
Operator's employment counsel reviewed RatesReady's IRS-compliant methodology against California Labor Code 2802. RatesReady provided full documentation showing how each rate component was calculated, sourced, and kept current by AI modeling.
Week 2
Contract signed, Compliance tier selected
Annual contract at $79/location/month. Compliance tier chosen to include MVR checks — California requires annual MVR reviews for delivery employees.
Weeks 3–4
Driver onboarding & vehicle classification
32 drivers onboarded via SMS. Each driver's vehicle class confirmed via VIN photo — critical in California where vehicle class affects both the rate and compliance documentation.
Month 2
First delivery rate cycle complete, audit trail established
All 32 MVR checks passed. Compliance dashboard showed complete records across all 8 locations. Full audit trail exported for legal file.
Ongoing
Monthly auto-refresh, zero compliance gaps
Rates update monthly with current California fuel prices and carrier data. Annual MVR re-checks automatically scheduled.
"Our attorney said the delivery rate documentation was exactly what we would need if California ever came knocking. That alone was worth the price."
Director of Operations · 8-location independent pharmacy group, Los Angeles
$58K
Annual savings vs. prior flat rate
CA 2802
Labor Code compliance fully documented
32
Drivers onboarded and MVR-cleared in 2 weeks
Get your locations' delivery rates
We will pull California-specific delivery rates for each of your locations and walk you through the compliance documentation.
Delivery Driver Mileage Reimbursement, Explained
Quick answers to the questions pizza and QSR operators ask most about reimbursing W-2 delivery drivers.
What is RatesReady?
RatesReady is mileage reimbursement compliance software for pizza and QSR franchise operators with in-house W-2 delivery drivers. It calculates ZIP-code-level per-mile reimbursement rates using actual local insurance filings, current gas prices, and vehicle depreciation data, producing audit-ready documentation. Pricing starts at $49 per location per month.
What is the IRS mileage rate in 2026?
The IRS standard mileage rate for 2026 is $0.76 per mile, the highest rate in history. It is a nationwide average, not a measure of what driving costs in any specific market. Location-specific rates calculated from actual local costs average around $0.44 per mile in markets like Metro Detroit, roughly 42% below the IRS figure.
Is paying the IRS rate legally safe?
No longer automatically. A March 2024 federal appellate ruling eliminated the defense that paying the IRS rate satisfies state wage-law reimbursement requirements. Courts now require driver-by-driver, location-by-location cost analysis. California Labor Code 2802 requires reimbursement of actual necessary expenditures.
How are location-specific rates calculated?
A compliant per-mile rate combines fixed costs (insurance, depreciation, registration) divided by annual miles, plus variable costs (fuel, maintenance, tires) per mile. RatesReady sources insurance from state department of insurance rate filings, fuel from monthly EIA data, and depreciation from current vehicle market pricing — computed per ZIP code and vehicle class, refreshed monthly.
How much can operators save?
Operators reimbursing at actual local cost instead of the $0.76 IRS flat rate typically save $1,000 to $6,500 per driver per year, depending on market. A 10-driver operation can overpay by $28,000 to $40,000 annually using the flat rate in a market where actual costs are lower.
Who is RatesReady built for?
Multi-unit pizza franchise operators with in-house W-2 delivery drivers, including franchisees of Marco's Pizza, Hungry Howie's, Jet's Pizza, Donatos, Round Table Pizza, Mountain Mike's, and Fox's Pizza Den, plus independent pizzerias and pharmacy delivery operators.