--- title: "Accounts payable processing for franchise owners" description: "Accounts payable processing for franchise owners: accounts payable outsourcing: invoice capture, coding, 3-way matching, approval routing and payment-run." url: https://ledgerbpo.com/industries/franchises/accounts-payable/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Accounts payable processing for franchise owners Accounts payable processing for franchise owners is dominated by a few large recurring vendors: the approved distributor, the landlord, the franchisor's ACH drafts, utilities, and the technology and marketing vendors the brand mandates. The volume is high and the approval chain is often one owner on a phone. A LedgerBPO accounts payable specialist captures every bill through Dext, Hubdoc or Bill.com, codes it to the right unit, matches distributor invoices to delivery statements and co-op rebates, and queues approved bills for payment on the schedule you set. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for franchise owners You approve and release every payment; we never move money. ## What is accounts payable outsourcing? Accounts payable outsourcing means a remote specialist runs the process from vendor invoice to approved payment run: capturing bills, coding them to the ledger, matching them to purchase orders and receipts, chasing approvals and preparing payments for release. The business keeps control of the bank account and the final release. The provider works in the company's own software. ## What we handle for franchise owners - Distributor invoices matched to weekly statements and rebate credits - Franchisor ACH drafts recorded on the day they clear, by unit - Rent, CAM charges and percentage rent coded per lease - Approval routing in Bill.com or Melio with the owner as final approver - Vendor statements reconciled monthly so no duplicate bill is paid ## The KPI that matters here Every vendor bill captured and coded within 2 business days of receipt. ## Franchises compliance notes ### Franchisor royalty reporting Your agreement defines gross sales for royalty purposes, and the definition often excludes sales tax and refunds but includes gift-card redemptions and delivery orders. We keep the ledger's sales accounts aligned to that definition so the weekly upload and the monthly royalty statement reconcile without manual adjustments. Any dispute is documented with POS exports the franchisor can trace. ### Marketing-fund and local advertising reporting Brand marketing-fund contributions are a separate percentage from royalties and many agreements also require a minimum local advertising spend, often 1 to 2% of gross sales, with proof on request. We track both in their own accounts and keep invoices attached so the annual attestation is a report, not a search. ### Audit rights and record retention Franchise agreements commonly allow the franchisor to inspect books and POS data, and to charge the audit cost to you if under-reporting exceeds a stated threshold, frequently 2 to 3%. Every sales entry carries its source document in LedgerDesk so an inspection can be answered from the file. ### Multi-state sales tax and payroll Units in different states carry different sales-tax rates, filing frequencies and payroll registrations. We track liabilities by unit and state, prepare the workings, and your registered preparer files; we do not file on your behalf. ## Franchises software we work in - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - [Gusto](https://ledgerbpo.com/software/gusto/) - [Square](https://ledgerbpo.com/software/square/) - [Dext](https://ledgerbpo.com/software/dext/) - [Fathom](https://ledgerbpo.com/software/fathom/) - Toast - [All 50 platforms](https://ledgerbpo.com/software/) ## More for franchise owners Other services for franchises - [Bookkeeping](https://ledgerbpo.com/industries/franchises/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/franchises/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/franchises/accounts-receivable/) - [Bank reconciliation](https://ledgerbpo.com/industries/franchises/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/franchises/month-end-close/) - [Financial reporting](https://ledgerbpo.com/industries/franchises/financial-reporting/) - [All franchises services](https://ledgerbpo.com/industries/franchises/) Accounts payable in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/accounts-payable/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/accounts-payable/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/accounts-payable/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/accounts-payable/) - [The full accounts payable page](https://ledgerbpo.com/services/accounts-payable/) ## Frequently asked questions ### Can you process bills from my franchisor's approved distributor? Yes, distributor invoices are the largest payable in most franchise units and we treat them as a weekly reconciliation, not just data entry. Each invoice is coded to the receiving unit, compared against the brand's contract pricing where you supply it, and matched to the distributor's statement and any rebate credits before the payment run. ### How do you handle percentage rent and CAM reconciliations? Leases with percentage rent require a gross-sales figure per unit, which our unit-level books already produce. We calculate the percentage rent accrual monthly, record the landlord's annual CAM reconciliation as a true-up, and flag any charge that does not match the lease terms. You decide whether to dispute it with the landlord. ### Do you pay the bills or do I? You do. We prepare the approved payment batch in Bill.com, Melio or your bank's bill-pay tool, and you release it with your own login. Franchisor drafts and rent that leave by ACH are recorded when they clear. This keeps control of cash with the owner and matches how our month-end close service for franchise owners verifies payables. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/franchises/accounts-payable/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt