Gift Card Pooling | Royalties & Brand Dev Fees | Invoices
The primary way franchisors generate income in a franchising business model is the collection of royalty fees on a units sales. Franchisors are also obligated to reconcile brand-wide gift card liabilities between stores. Traditionally, these processes involve 3 general steps and a number of in-house or third party services to:
1. Collect and record sales (Payment Platform and POS)
2. Calculate the appropriate fees (in-house or 3rd party accounting)
3. Initiate transfers between merchants (generally a separate invoicing service)
By leveraging the Adyen Platform, Crisp has created services to remove the friction from the process, allowing franchisors to record sales, calculate fees, and initiate transfers all using a single service. Franchisors enjoy a flexible system that allows store level configuration for fees, splitting deposits to separate accounts for easier audits, and instant visibility into transaction statuses.
GIFT CARD POOLING
Gift card pooling allows you to manage inter-location payables and receivables for your brand wide gift card program.
When a gift card is purchased at a location, the money collected should be transferred to a corporate account. When a gift card is redeemed, the value redeemed should be transferred to that store from the corporate account.
To find the net receivable per store, the following equation is used.
(Sold Gift Cards + Credit Added Manually) - (Redeemed Cards)
Net Receivable
If the net receivable is positive, this means that the store has added more to the total liability than they have redeemed. In this case money will be transferred from the store’s account, into the corporate account.
If the net receivable is negative, this means the store has redeemed more gift card value than they have added to the total liability. In this case money will be transferred from the corporate account into the stores account. See visual below.
In order to begin the transfer process between locations you will need to go to your Dashboard Admin > Admin Reports > Gift Card Pooling > Click "+ New Report" and the following page will pop up.
Enter in the dates that you would like to pull from. Note that reports may not overlap with an existing report. Click "Run Report".
Once you run the report you will need to wait until it is processed (a few minutes) then click "Initiate Transfer".
After the transfer has been initiated it will begin the process of withdrawing and depositing into each locations bank account. Once the transfer is complete you will see "In Progress" status change to "Transferred". You will then be able to open up the report and view the transfer that took place at each location as shown below.
ROYALTIES & BRAND DEV FEES
Before you are able to begin pulling Royalties and Brand Development (Marketing) Fees from your Franchisees you will need to set up your percentages and/or dollar amounts through the Royalty Settings.
This is done by going to your dashboard clicking Admin > Admin Reports > Royalties & Brand Dev > Click "Settings" and the following page will pop up.
Here you are able to set brand wide settings for both Royalties and Brand Dev Fees. If you need to set these numbers by store you are able to click "Stores" and select them individually.
You are also able to edit the settings after they have initially been set by clicking "+ New" on the main settings page or the calendar button on the store settings and select the date you would like the new fees to begin.
| Gross Sales | Net Sales + Discounts + Refunds Sales. |
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| Net Sales | Does NOT include Sales Tax, Gift Card Sales, Tips received. |
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Once you settings have been set you can start transferring your fees. Follow the steps below.
Click "+ New Report" and the following page will pop up.
Enter in the dates that you would like to pull from. Note that reports may not overlap with an existing report. Click "Run Report".
Once you run the report you will need to wait until it is processed (a few minutes) then click "Initiate Transfer".
After the transfer has been initiated it will begin the process of withdrawing the fees from your stores and depositing them into your corporate bank account. Once the transfer is complete you will see "In Progress" status change to "Transferred". You will then be able to open up the report and view the transfer that took place at each location as shown below.
INVOICES
When either your Admins or Crisp initiate a transfer at one of your locations, the owner of the location will receive an invoice sent directly to the email associated with their account.
If you ever need to access invoices after a transfer you are able to Export them from the Invoices page under the Admin section on the Dashboard.
You will be able to pull the following invoice types:
Once you pull a report you are able to download each Invoice individually or export all at one time.
