Franchise royalty and fee management with financial controls

What is franchise royalty management software?

Franchise royalty management software calculates what each franchisee owes the franchisor — the royalty and any marketing/ad-fund fee — from reported sales and the franchisee's negotiated rates, then handles invoicing and collection. It replaces the error-prone spreadsheet that most emerging franchisors start with.

In Brandafai you record a franchisee's gross sales for a period; the system computes the royalty and marketing fee from their stored rates (held in basis points, e.g. 600 = 6.00%), produces a draft statement, and lets you issue the invoice with a due date and reminders.

How are royalties calculated?

Royalty and marketing fee are each a percentage of gross sales, stored per franchisee in basis points so the math is exact. For gross sales G, a royalty rate of r basis points yields a royalty of G × r ÷ 10,000; the marketing fee is computed the same way from its own rate.

• Per-franchisee royalty and marketing-fund rates in basis points.
• Draft → sent → paid statement lifecycle, with reminders on overdue invoices.
• Corrections to a draft recompute the royalty and fee automatically.

What financial controls prevent errors and fraud?

Adjustments and credits go through segregation of duties: the person who raises an adjustment cannot approve it. A different user with approval permission must sign off, and the decision — including who approved it and when — is recorded in an append-only audit trail. Once an invoice is sent it is immutable; changes must go through an approved adjustment rather than an edit.