Royalty Configuration

MyTime provides franchisors with the ability to seamlessly configure and automatically receive royalty payments from franchisees on a regular cadence. The royalty fee structure is set up at the franchisor (parent) level and can be configured to collect various royalties, such as monthly brand development and technology funds or percentages of sales. In this article, we will guide you through the steps of configuring royalty fees.

Things to know:

• This feature is controlled by a hidden setting that only the MyTime team can enable. To enable the hidden setting, please contact our support team at support@mytime.com.
• The use of the royalty feature is free for all enterprise account users, but there is a fee of $5 per transaction to automatically debit franchisee location bank accounts for the royalty payment.
• Royalty fees are calculated every time a ticket is closed
• Revenue for prepaid items can be calculated based on the time of purchase or the time of use
• Royalty fees can be applied on a per-item basis, depending on your selection from options such as services, products, classes, packages, memberships, and gift cards. Moreover, there is also the option of a flat rate that applies to all items.
• If the 31st of every month is chosen as the settlement date, then the settlement process will take place on the last day of the month, even for months that do not have 31 days. For example, in February, the settlement will occur on February 28th.

Content:

• Enable Royalty Settings
• Set Up Bank Account to Receive Royalty Payments
• Configuring Royalty Fee
• Editing or Deleting Royalty Fees

Enable Royalty Setting

Once the hidden setting is enabled, you can configure your desired royalty settlement frequency by:

1. Navigating to Business Setup > Settings
2. Locate the "Enable Royalty Fee" setting and toggle to "YES"                                                                                        
3. Decide whether revenue for prepaid transactions should be calculated based on the "Time of Purchase" or "Time of Use". Once set, this choice cannot be changed. Prepaid items include membership value and item credits, as well as redemptions for packages and gift cards.                                                                                                                                                                                                                                                                       
4. Settlement Frequency: The date of fee collection across all franchisees for all fees
   • Repeats: It can be set to repeat either daily, weekly, or monthly
   • Every: In the "Every" field, enter the number corresponding to the selected frequency in the Repeats filter. For instance, if the Repeats filter is set to weekly and you input 2 in the "Every" field, it signifies that the fee should be charged every 2 weeks.
   • Start On: Specify the date on which royalty calculations should begin. For instance, if the start date is October 1st and the frequency is set to 1 week, the initial transfer will occur on October 8th, covering fees calculated from October 1st through October 7th.                                                                                                             
5. Next, add the bank account to receive royalty payments.

Set Up Bank Account to Receive Royalty Payments

To add the bank account for receiving royalty payments:

1. Click +Add Bank Account                                                                                                                                           
2. Enter the required information                                                                                                                                           
3. Save
4. Once you click Save, you will be redirected to Stripe's website to complete the remaining onboarding
5. Follow the instructions, then click "Agree and Submit"
6. You will be directed to the Business Setup > Settings page, where you can now proceed to configure the various royalty fees

Configuring Royalty Fee

To configure royalty fees:

1. Select the +Add New Royalty Fee hyperlink
2. The following options will appear:
   • Name: The name of the royalty fee that will appear in the Royalty report
   • Description: Additional information or details about the purpose or nature of the royalty fee. This field is optional. 
   • Locations: Locations where the royalty fee is applicable
   • Fee Type: Select between "Per Item" and "Flat Fee"
     • Per Item: 
       • Type: Specify whether the fee is a flat dollar value ($) or a percentage (%)
       • Value: Input the value for the selected dollar amount or percentage
       • Applicable To: You have the option to select one or more categories from the following: service, products, memberships, classes, packages, or gift cards.
     • Flat Fee: If chosen, a flat dollar value ($) will be collected for each transaction
3. Scroll to the bottom of the settings page to save the changes

Editing or Deleting Royalty Fees

To modify or remove your royalty fee:

1. Navigate to Business Setup > Settings from the parent account 
2. Locate the Royalty Fees section
3. Select the edit icon located next to the Royalty Fee you intend to modify
4. The Royalty Fee modal will appear, allowing you to make edits according to your preferences
5. In the event of any edits, please ensure to save your changes
6. To delete the royalty fee, click on the "Delete Fee" link located at the bottom left-hand corner of the modal
7. Confirm the deletion by typing "delete" in the confirmation modal                                                                                            
8. Press the "Delete" button to confirm and complete the deletion

For more information, contact us at support@mytime.com.

Related Article:

Configuring Bank Account for Royalty Fee Collection 

Royalty Fee Report 

Royalty Payments & Settlement Report