How it runs for franchise owners
Payments are applied by unit so each location's receivable aging is accurate.
What is accounts receivable outsourcing?
Accounts receivable outsourcing means a remote team manages the money your customers owe you: tracking invoices from issue to payment, sending statements and reminders, logging disputes, and reporting aging and days sales outstanding. The provider works inside your accounting software under your brand. You keep the customer relationship and decide on credits, holds and escalations.
What we handle for franchise owners
- Aging maintained per unit and per corporate customer
- Reminder cadence under your brand before and after due dates
- Promise-to-pay log with follow-up dates the owner can see
- Insurance and third-party payer receivables tracked to remittance
- Disputed invoices escalated with the original order attached
The KPI that matters here
Receivables over 60 days kept below 10% of the open balance across all units.
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
More for franchise owners
Other services for franchises
Accounts receivable in other industries
Frequently asked questions
Do franchisees really need accounts receivable management?
Any franchisee with corporate, catering, contract or insurance-paid customers does. Those invoices often represent a few large balances rather than many small ones, so one slow payer can equal a week of counter sales. A defined follow-up cadence, run by someone whose job it is, brings that cash in without pulling the unit manager off the floor.
Will your follow-up calls use my franchise brand?
Yes, all reminders and calls are first-party communications under your brand and your business name, never a collection agency. Scripts follow the tone you approve, call recording follows the rules of your state, and agents never take card details; customers pay through your portal or POS. Anything that needs a legal step is handed back to you.
How do you handle receivables when units are in separate LLCs?
Each entity has its own customer list and aging in its own accounting file, and the cadence runs per entity. Where a corporate customer buys from several of your units, we keep the statements separate so payments are applied to the correct legal entity. The cash application service for franchise owners covers how those payments are matched.
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