In the Soffront CRM, royalty management between franchisors (FR) and franchisees (FE) is made seamless through an advanced system of calculated royalty plans and exception handling. This article provides an in-depth explanation of how franchisees update royalty data manually, with built-in exception capabilities and formula-based calculations, ensuring accuracy and flexibility.
1. Creation of Royalty Plans with Calculated Fields by Franchisor
The franchisor initiates the royalty process by defining detailed royalty plans within the system. Each plan consists of:
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Standard Fee Components: These include fields such as Marketing Fee, Technical Fee, Other Fee, and additional miscellaneous fees.
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Calculated Formulas: Each fee component can have a formula attached that dynamically calculates royalties based on the account’s financial data. For example, formulas like:
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Make Sure to add Royalty Owed Calcualted Option
- These formulas automate royalty computations, reducing manual errors and ensuring consistency across all franchisee accounts.
2. Applying Royalty Exceptions to Accommodate Special Cases
Recognizing that some franchisees may have unique agreements or temporary discounts, the system allows Royalty Exceptions to be added to any royalty plan. These exceptions permit:
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Fee Overrides: Either a flat fee or percentage adjustment can be applied.
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Date-Bound Application: Exceptions are active only within specific date ranges, allowing for temporary or periodic modifications.
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Value Ranges: Minimum and maximum allowable values can be defined, adding control over the adjustments.
This flexibility ensures franchisees can report royalties that reflect real-world complexities while staying within franchisor-defined limits.
3. Manual Royalty Reporting by Franchisees
Franchisees enter royalty data through their unit interface with these important conditions:
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Source Field Set to “Manual”: Every FE royalty record is marked “Manual” to indicate self-reported data.
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Input Fee Amounts: Franchisees report sales and fees, incorporating exceptions.
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Automatic Formula Application: The system calculates royalties dynamically based on franchisor-defined formulas.
Once franchisees submit or update royalty records, the changes instantly appear in their reports—no need to use the “Calculate” button for the updated values to show.
Once franchisees submit or update royalty records, the changes instantly appear in their reports.
4. Instant Royalty Updates from Franchisee to Franchisor Without Manual Calculation
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When franchisees update or submit their reported sales with fee exceptions and manual inputs, these changes immediately propagate to the franchisor’s royalty report.
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The franchisor does not need to click the “Calculate” button to see the updated royalty values—the system reflects the latest data automatically.
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This instant synchronization ensures that the franchisor’s view is always current with franchisee inputs, reducing manual overhead and avoiding discrepancies.
Conclusion
By combining calculated royalty formulas with exception capabilities, and ensuring franchisees report royalty figures manually (with the source set to “Manual”), Soffront provides a powerful and flexible royalty management solution. This system enhances transparency, accuracy, and collaboration between franchisors and franchisees, making royalty processes more reliable and easier to manage across the franchise network.