Chain
Franchise agreements and monthly royalty statements
Keep each franchisee's agreement: royalty %, on labour, parts or both, a minimum monthly royalty and a marketing fund. Every month a statement is worked out from the franchisee's invoices, refunds and counter sales, topped up to the minimum. It is invoiced to them in one click.
PlansEnterprise only
Why it matters
A franchisor charges each workshop a royalty and a marketing fund on its sales, often with a minimum. Collecting each franchisee's sales every month, splitting labour from parts and checking the minimum takes days and leads to disputes. In SmartMy Garage the franchisees work in the same system. So the statement is worked out from their own invoices, refunds and counter sales, in each franchisee's time zone. Sales between group companies are left out. One click makes the franchisor's invoice and the franchisee's bill.
The problem it solves
- Each franchisee reports its own sales by email, late, and the royalty is worked out on their figures.
- The agreement says royalty on labour only, plus a minimum, and the spreadsheet gets it wrong.
- Counter sales of accessories never reach the royalty base.
How it works
- 01
A franchise manager opens Garage > Head Office > Franchise > Agreements and clicks New.
- 02
Choose the franchisor and the franchisee, the dates, the royalty % and what it is on: labour, parts or both. Add a minimum monthly royalty and a marketing fund % if the agreement has them.
- 03
Check the royalty and marketing fund products on the Terms and Invoicing tab. Tick Vendor Bill for the Franchisee if their bill should be made too.
- 04
Each night, last month's statements are worked out by themselves. Statements of Last Month, or Statement of Last Month on an agreement, does it at once.
- 05
Open a statement: labour and parts revenue, royalty base, royalty, minimum fee top-up, marketing fund and total due. If invoices changed since, click Work Out Again.
- 06
Click Invoice. The franchisor's invoice is made, and the franchisee's bill if the agreement says so.
Everything it does
The agreement
- Franchisor, franchisee, from and to dates, state
- Royalty (%) and Royalty On: Labour, Parts or Both (the default)
- Minimum Monthly Royalty
- Marketing Fund (%) and Marketing Fund On (Both to start with)
- Vendor Bill for the Franchisee: on to start with
- Royalty product, marketing fund product, territory, term, renewal and other fees noted
The monthly statement
- From the franchisee's confirmed invoices and refunds of the month
- Counter sales with no invoice counted too; invoiced counter sales only through their invoice
- Sales to other Entities of the same group left out
- Month midnight to midnight in the franchisee's time zone; amounts in the franchisor's currency
- Labour and parts split from the products sold; a line per invoice or counter sale
Access
- Franchise Manager role: every company of the network
- A franchisee sees only its own agreement and statements
Invoicing the statement
- Invoice makes the franchisor's posted invoice for the royalty and the marketing fund
- The franchisee's vendor bill is made in its own books when the agreement asks for it
- Statements of Last Month and Statement of Last Month (on an agreement) work it out at once
- Work Out Again before invoicing when invoices changed; Cancel drops a statement
Report
- Royalties: by franchisee and month, in a pivot or a chart
Who uses it
Where you use it
- Web: Garage > Head Office > Franchise (Agreements, Royalty Statements, Royalties)
- Not in the SmartMy Garage app: franchise stays on the web
- Not built: a printed royalty statement; the statement is read on screen and invoiced
What you control
Settings
- Per agreement: royalty % and base (Both), minimum, marketing fund % and base (Both), franchisee bill (on), products
- Statements of last month made each night by themselves
FAQ
Questions, answered.
Where do the sales figures come from?
From each franchisee's own confirmed invoices, refunds and counter sales in SmartMy Garage. Nobody types them in.
Can the royalty be on labour only?
Yes. Royalty On can be labour, parts or both, and the marketing fund has its own base.
What if the royalty is below the minimum?
The statement adds a Minimum Fee Top-up so the total reaches the minimum monthly royalty.
Can a franchisee see other franchisees' figures?
No. A franchisee sees only its own agreement and statements. Franchise managers see the whole network.
Are counter sales of accessories counted?
Yes. Counter sales with no invoice, paid at the franchisee's registers, are in the royalty and marketing fund bases. They are split into labour and parts by the products sold. Counter sales that were invoiced count once, through their invoice.
Do sales between our own companies count?
No. Sales to other Entities of the same group are left out of the statement.
What if an invoice is changed after the statement?
Open the statement and click Work Out Again before you invoice it.
Related
Related features.
Head office scorecards across branchesEnterprise only
Head office sees one scorecard per branch and month. It shows job cards, revenue split into labour and parts, average repair order, labour efficiency, comeback rate and approval rate. Compare branches for any dates with a group total, follow the trends, and give head office staff a role that only reads.
The counter: registers, cash, refunds, and items put on the job cardFrom Growth
Sell parts, oils and accessories over the counter with registers, sessions, cash counts, refunds and invoices. When a customer waiting for their car buys something, put it on their job card so everything is paid once, on one invoice.
Several branches (entities) in one accountEvery plan
Run every workshop of your business in one SmartMy Garage account. Each branch is an Entity with its own numbering, settings, stock and books. Staff work only in their branches, and the owner sees them together.
Full accountingFrom Scale
Job card invoices, the insurer's and the customer's invoices, fleet invoices, counter sales and payments post into your books on every plan. Scale adds supplier bills from parts purchases and the full accounting screens and reports. These run from ledgers to cash flow and consolidated branches, with GSTR-1 and GSTR-3B for India.
Invoices from approved work, part invoices and deliver only when paidEvery plan
Bill exactly the work the customer approved, in one invoice or in parts, with the taxes already on each line. Invoiced lines are locked, and a branch can choose to hand cars back only once the bill is paid.
Want to see it on your own job cards? Book a demo and we walk you through it with your workshop's work.