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 brand 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?

When a brand turns on approvals, adjustments and credits follow segregation of duties: the person who raises an adjustment cannot approve it, a different user with approval permission signs off, and who approved it and when is recorded in an append-only audit trail. Small adjustments can be auto-approved under a threshold the brand sets. Once an invoice is issued its total is fixed; a change is a recorded adjustment, never an edit.