Franchise Royalties Unleashed: Tools and Tactics for Growth

Effective franchisor royalty collection and management requires strong systems, open communication with franchisees, diligent monitoring, and proactive measures to address issues promptly. By addressing these challenges, franchisors can ensure a smooth and profitable operation of their franchise network. However, franchisor royalty collections and management can pose several challenges and issues. Some of the key issues include delays, inaccurate reporting, time-consuming audits & verifications, franchisee financial difficulties, and lack of technology- to streamline royalty collections and management processes.

Keith Gerson hosted three of the most knowledgeable experts in franchising on best practices in royalty management. They covered the following topics:

• How the experts structure their royalty programs when it comes to considering sales volumes, time in the business, etc.
• Why conducting a royalty competitive analysis annually will pay dividends
• How to handle franchisees who don’t report on a timely basis
• Methods for recovering lost future royalties stemming from early franchisee terminations
• How to integrate payment collection systems with your overall franchise management platform for seamless coordination enabling automated tracking, reporting, and reconciliation of royalty payments.