What is a franchise royalty fee? Do you have to make periodic franchise royalty payments? Royalty audits are often part of a larger franchise compliance program, which can include site visits and evaluations, interviews with customers and employees, and written reports being delivered to franchisees and managers.
Accurate royalty and marketing fund payments not only benefit you as the franchiser , they also benefit all of your individual franchise owners — assuring dollars for marketing and promotional programs are shared fairly by all franchisees. At the heart of StoneBridge Business Partners’ franchise and royalty compliance auditing is a thorough search for common under-reporting problems and other issues that can cut your profitability: inefficiencies and mismanagement. This process maximizes your Compliance efforts and identifies underreported Royalty Fees. Our success and client satisfaction is due to the specialized service we provide to clients. Our fee structure is lower than others because we keep overhead to a minimum and focus on franchising.
Audits are one way to monitor franchisee compliance. However, for most franchise systems, putting a franchisee on notice that it will be subject to an audit is a difficult step. Some franchisors see it as contrary to building and developing a cooperative business relationship.
