Royalties and marketing levy
Head office sets royalty and marketing levy rates, checks each franchise’s sales for a month, and raises one draft invoice per franchise to review and send.
Where it is
- Network → Royalties
- Invoices — Where the draft invoices land
Settings for this
- Network → Royalties → Rates — Royalty %, marketing levy % and a minimum royalty a month, for every franchise
- Network → Royalties → Rates for a franchise — One franchise’s own rates (blank = the default)
Head office only, in the Network module.
Set the rates
- Open Network → Royalties.
- Under Rates: Royalty (% of sales), Marketing levy (%) and Minimum royalty a month (ex GST). Press Save rates. These apply to every franchise.
- Under Rates for a franchise, give one franchise its own rates and Save. Blank uses the rates above.
Raise a month
- Pick the month at the top of Charges for [month].
- Check each franchise's Sales (ex GST), Royalty, Levy and Total (ex GST), and the totals.
- Press Raise N invoices and confirm. One draft invoice per franchise is made in your books, with a Royalty line and a Marketing levy line.
- Review, approve and send them from Invoices like any other: emails, pay links and Xero work as usual.
Sales are the franchise's own invoices dated in the month (not drafts, voided or cancelled, and not linked-supply invoices), less discounts and credit notes dated in the month.
A month is raised once per franchise: the row then shows its invoice. Voiding that invoice lets you raise it again. The franchise sees these invoices, with the rates and sales they're worked from, on its statement with head office.
If something's not right
- The button says All raised: every franchise with something to charge already has its invoice for that month.
- Nothing to charge: the franchise had no sales that month and there's no minimum royalty.