Royalty Fee Report

The Royalty Fee Report provides a summary of the royalty fees earned by the franchisor during the specified time period. 

Things to know:

• To learn how to configure royalty fees, click here
• This report will only be visible if royalty is enabled at the parent level
• The report can be accessed at both the parent and child levels. However, at the child level, access is restricted to the location owner and location manager only.
• When viewing the Royalty Fees report at the child level, the report will display only the fees associated with that specific child company. In contrast, at the parent level, the report will include fees from all child accounts.
  
• If multiple royalty fees are configured at the parent level, each fee will appear in its own column. For example, columns may be labeled as Brand Development Fee, Technology Fee, and similar categories.
• Data will be displayed for items within any selected date range, but the royalty fee will only be displayed if the selected date is on or after the royalty fee was configured. For instance, if the royalty fee was configured on May 1st, and you filter the report to a date before May 1st, the revenue for each item will be displayed, but the royalty fee will only appear if the report is filtered to a date after May 1st. 
• If membership is selected when configuring royalty and is set to a flat fee, royalty will only be calculated on the membership charge.
• If an item is refunded or partially refunded, the revenue for the item will stay the same, and the refund amount will be displayed in a separate refund column. For example, if a client initially purchased a membership for $200 but later changed their mind, resulting in a refund, when reviewing the Royalty Fee report, the $200 will still be present in the membership revenue column, and the refund amount will also be displayed in the corresponding refund column. This ensures clarity in tracking both the original revenue and the refunded amount for accurate financial reporting.
• Royalty at the time of purchase: If the royalty fee is configured on a per-item basis, it will be calculated on all item purchases and not items covered by packages or memberships. For example, if a client has a membership and books a service or purchases a product included in the membership, the royalty fee calculation will 01on the membership sale and not the membership usage. However, the revenue for the service or product will be visible in the revenue and prepaid columns.
• Royalty at the time of use: If the royalty fee is configured on a per-item basis, it will be calculated for items covered by packages or memberships. For example, if a client has a membership and books a service or purchases a product included in the membership, the royalty fee calculation will only account for that specific service or product. 

Contents:

• Report Filters
• Report Columns (Time of Use)
• Report Columns (Time of Purchase)
• Scenarios

To access this report:

1. Navigate to Dashboard

2. Select the Reports tab

3. Under the Company section, select the Royalty Fees report

When the report opens, you can filter by a specific location and date. You also have the ability to export to Excel, PDF, or print                                                                                                                    

Once you have selected your filter preference, click on the UPDATE button to generate the desired data 

Report Filters

Report Columns (Time of Use)

Report Columns (Time of Purchase)

Scenarios

Time of Use

Royalty Configuration:

• Recognize Revenue for Prepaids At - Time of Use
• Royalty Fee: 20% on a per-item basis

1. Royalty Calculation on Memberships with value credits:

• If a membership costs $200 and provides $200 worth of value credits, the revenue will show $200 for the membership purchase, but no royalty will be calculated at that stage.

• When the client uses all $200 of the value credits, the revenue for the services will reflect $200, and the royalty fee will be calculated as $40 (20% of $200).

2. Royalty Calculation on Memberships with item credits:

• If a membership costs $200 and provides 3 item credits, no revenue will be displayed for the membership purchase.

• When the client uses all 3 item credits on three $50 services, the total royalty fee will be calculated as $30, using the formula: (3 × $50) × 20% = $30.  

3. Royalty Calculation on Memberships with item credits and value credits:

• If a membership costs $200 and provides $100 in value credits and 2 item credits:
  The revenue will display $100 for the membership purchase, but no royalty will be calculated at this stage.

• When the client uses all value and item credits:

  1. Books a $60 service using value credits:

     • The revenue for this service will reflect $60.

     • The royalty fee will be calculated based on the $60 value.

  2. Books a $30 service using 1 item credit:

     • The revenue for this service will not appear in the report. However, the royalty fee for the $30 service will be included in the royalty fee column. 

        

       

Time of Purchase

Royalty Configuration:

• Recognize Revenue for Prepaids At - Time of Purchase
• Royalty Fee: 20% on a per-item basis

Royalty Calculation:

• Service Revenue: $50

  • Royalty Fee: $50 × 20% = $10

• Product Revenue: $30

  • Royalty Fee: $30 × 20% = $6

• Gift Card Revenue: $50

  • Royalty Fee: $50 × 20% = $10

• Package Revenue: $200

  • Royalty Fee: $200 × 20% = $40

• Membership Revenue: $200

  • Royalty Fee: $200 × 20% = $40

• Total Revenue: $530

• Total Royalty Fee: $10 + $6 + $10 + $40 + $40 = $106

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

Related Articles:

Royalty Configuration 

Configuring Bank Account for Royalty Fee Collection 

Royalty Payments & Settlement Report