| LOCATION | VEHICLE CLASS | INSURANCE/YR | FIXED/MO | TOTAL/MI | vs IRS $0.725 |
|---|---|---|---|---|---|
| Canton, MI 48187 | New Compact Sedan | $2,291 | $433/mo | $0.4348 | −$0.265 |
| Plymouth, MI 48170 | New Compact Sedan | $1,962 | $388/mo | $0.3981 | −$0.302 |
| Southfield, MI 48034 | New Compact Sedan | $4,892 | $725/mo | $0.5668 | −$0.133 |
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.
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.
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.
Stay compliant with ease. RatesReady uses state of the art modeling, AI, and deep industry experience to keep your reimbursement program fully IRS-compliant — without the complexity.
New, old, and used — sedans, SUVs, trucks, and EVs across three model year ranges. Every driver gets the rate that matches their vehicle.
Drivers onboard in 3 text messages — name, license photo, VIN photo. No app download required. Annual MVR checks run automatically.
Every rate change, MVR check, and compliance action is timestamped and logged. IRS audit-ready from day one.
Select your state to see how FAVR rates compare to the IRS standard in your market.
Savings vary by vehicle mix, driver miles, and market. See estimates for your specific delivery type.
Tell us about your operation and we will be in touch within one business day.
Thanks for reaching out. Someone from our team will contact you within one business day to walk you through RatesReady and scope the right plan for your locations.
Franchise delivery operators are caught in a compliance trap. The IRS flat rate of $0.725/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 franchise operators managing 3–20 delivery locations. We give you a fully IRS-compliant FAVR reimbursement rate for every location — calculated at the address level, refreshed monthly, and backed by a complete compliance record your accountant and your drivers can trust.
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.
The IRS flat rate is the default — not the right answer. Here is what changes when you switch.
Unlimited drivers per location. No per-seat fees. Annual contracts — request a demo to get started.
IRS 2026 standard mileage rate: $0.725/mile · RatesReady avg Michigan rate: $0.44/mile · Your savings: up to 39%
| Feature | Starter $49/loc |
Compliance $79/loc |
Enterprise Contact us |
|---|---|---|---|
| RATE ENGINE | |||
| Address-level FAVR rates | ✓ | ✓ | ✓ |
| Vehicle classes | 19 | 19 | 19 |
| Monthly rate refresh | ✓ | ✓ | ✓ |
| CSV export | ✓ | ✓ | ✓ |
| COMPLIANCE | |||
| IRS FAVR 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 | ✓ | ✓ | ✓ |
| API access | — | — | ✓ |
| White-label | — | — | ✓ |
| Support | Email + chat | Dedicated | |
At 4 drivers per location doing 20,000 miles/year, switching from the IRS $0.725 rate to the FAVR rate saves $1,160/driver/year in reimbursement cost.
Two detailed case studies — pizza delivery in Michigan and pharmacy delivery in California. Enter your work email to access.
A 6-location Domino's operator in the Detroit metro was reimbursing all drivers at the IRS flat rate — not knowing the actual FAVR cost in their markets was nearly 40% lower.
The operator had been reimbursing all 24 drivers at $0.725/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 FAVR cost was nearly 40% lower.
At 24 drivers doing 22,000 miles each, the operator was spending $382,800/year on mileage. The FAVR 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.
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 not a documented methodology. FAVR is. It calculates the actual cost of driving in a specific location, produces a documented output, and updates automatically. That documentation is what protects operators in an audit or lawsuit.
Adjust the sliders to model your own driver count and annual miles.
| Location | ZIP | FAVR Rate | IRS $0.725 | Savings/mi | Annual savings |
|---|
"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
We will pull the confirmed FAVR rate for each of your locations at no charge.
An independent pharmacy group operating 8 delivery locations across LA and Orange County needed a defensible reimbursement program that could survive California's aggressive wage enforcement environment.
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.
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.
FAVR 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 insurance costs vary significantly by ZIP. Adjust your prior rate to see your specific savings.
| Location | Area | FAVR Rate | Your Rate | Savings/mi | Annual savings |
|---|
"Our attorney said the FAVR 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
We will pull California-specific FAVR rates for each of your locations and walk you through the compliance documentation.