Royalty v2 report
Disclaimer
This article is only for the latest version of Zenoti Reports. Do not compare the data in this version with the data in the previous version.
In a franchisee-based business model, a corporation allows independent business owners to use its branding, business model, and other intellectual property. For this, the franchisee pays a percentage of their sales to the corporation.
Business owners and accountants can use this report to view details of royalties to be collected from franchisees.
Accounting type
Accrual: Revenue is for every business activity performed with or without payment
Cash: Revenue is recorded when the guest pays. This does not include redemptions.
For cash, the Include redemption on tax and Include redemption on tips/SSG transaction types are irrelevant.
Modified cash: Revenue is recorded when the guest pays. By default, this includes the redemption of all items.
When the guest redeems a liability to buy a service, product, or class, there's no payment, and thus, redemptions are not recorded as revenue.
If you wish to exclude redemptions on tax and tips, please use the transaction type filter and select Include sales and refunds only.
If loyalty point (LP) redemptions are configured as non-taxable, then the LP portion is treated as a discount and excluded from revenue and royalty computations.
Transaction type
Note
The Transaction Type filter only appears if the Accounting Type filter is set to Cash or Modified Cash. All three transaction types are included for all existing customers.
Include sales and refunds:
Cash Accounting Type (Collected exc. Redemption) = {(Sales Collected [Cash, card, check, custom]- Redemption on Tax - Redemption on Tips) * (Royalty Percentages for Royalty Categories [Percentage] or Royalty percentage for the item type)}.
If the royalty category is of the flat amount type, the computation is based on the flat amount for that category (Royalty category [Flat Amount]).
Modified Cash Accounting Type (Sales exc. Redemption) = {(Sales Exc. Redemption - Redemption on Tax - Redemption on Tips) * (Royalty Percentages for Royalty Categories [Percentage] or Royalty percentage for the item type)}.
If the royalty category is of the flat amount type, the computation is based on the flat amount for that category (Royalty category [Flat Amount]).
Include redemption on tax:
Cash Accounting Type (Collected exc. Redemption on Tax) = {(Tax Collected [redemption]) * (Royalty Percentages for Royalty Categories [Percentage] + Royalty percentage for the item type)}.
Modified Cash Accounting Type (Redemption on Tax) = {(Redemption on Tax) * (Royalty Percentages for Royalty Categories [Percentage]+ Royalty percentage for the item type)}.
If loyalty point (LP) redemptions are configured as non-taxable, they are excluded from Sales Exc. Redemptions are instead considered part of discounts. These LP amounts are not included in the royalty calculation.
Include redemption on Tips/SSG:
Cash Accounting Type (Collected exc. Redemption on Tips) = {(Tip Collected [redemption]) * (Royalty Percentages for Royalty Categories [Percentage] + Royalty percentage for the item type)}.
Modified Cash Accounting Type (Redemption on Tips) = {(Redemption on Tip) * (Royalty Percentages for Royalty Categories [Percentage]+ Royalty percentage for the item type)}.
Zone/Location group
Allows you to search for both zones and location groups if location groups are configured for the organization for at least one zone. Location groups will only be shown if the Enable Location groups setting is enabled. If the Zone/Location group filter is not visible, it means it is not enabled for your account. Please contact a person from Zenoti to enable this feature.
Category
All Royalty categories: Sum of royalty of individual categories.
Center Royalty: Royalty based on the percentage that is configured for the center.
Note
The optional columns can accommodate up to 100 characters.
At the organization or center level, click the Reports icon.
On the Reports page, search for and select the Business Payments: Royalty report.
If the report has many columns, scroll horizontally to the right or left to view all columns.
To view specific data on the report, select the desired filters. For more information, refer to the report features on Zenoti.
Click Refresh.
If you generate the report for over a year, click the Email button.
Column Name | Short Description | Details and Examples |
|---|---|---|
Columns for the Accrual accounting type | ||
Center Code | Unique code for identifying the center. | The unique code assigned to the franchisee center, as listed under the Business Details section. |
Center Name | Name of the center from which royalty is collected. | The name of the location from which royalty is calculated and collected. |
Service | Royalty amount for service sales. | The royalty amount calculated from total service sales at the center before any deductions. |
Product | Royalty amount for product sales. | The royalty amount calculated from total product sales made at the center. |
Membership charges | Royalty amount for membership sales. | This amount represents the total membership charges collected as royalties from the center for membership sales. |
Total Royalty | Total royalty amount from all revenue categories. | The total royalty amount to be collected from the franchisee based on the center’s overall sales during the reporting period. |
Columns for the Cash accounting type | ||
Center Code | Unique code for identifying the center. | The unique code assigned to the franchisee center under the Business Details section. |
Center Name | Name of the center from which royalty is collected. | The name of the location from which royalty is calculated and collected. |
Service | Royalty amount for service sales. | The royalty amount calculated from total service sales at the center before any deductions. |
Product | Royalty amount for product sales. | The royalty amount calculated from total product sales made at the center. |
Membership | Royalty amount for membership sales. | This amount represents the total membership charges collected as royalty from the center for membership sales. |
Package | Royalty amount for package sales. | The royalty amount calculated from total package sales made at the center. |
Gift Cards | Royalty amount for gift card sales. | The royalty amount calculated from total gift card sales made at the center. |
Prepaid Card | Royalty amount for prepaid card sales. | The royalty amount calculated from total prepaid card sales made at the center. |
Total Royalty | Total royalty amount from all revenue categories. | The total royalty amount to be collected from the franchisee based on the center’s overall sales during the reporting period. |
Flat Pay Period Fee | Fixed royalty charge that standardizes billing across centers. | The fixed royalty charge applied at the franchise or center level, independent of services, products, or sales volume. This column helps standardize invoicing and ensures transparent, predictable billing across locations. |
Columns for the Modified Cash accounting type | ||
Center Code | Unique code for identifying the center. | The unique code assigned to the franchisee center under the Business Details section. |
Center Name | Name of the center from which royalty is collected. | The name of the location from which royalty is calculated and collected. |
Service | Royalty amount for service sales. | The royalty amount calculated from total service sales at the center before any deductions. |
Product | Royalty amount for product sales. | The royalty amount calculated from total product sales made at the center. |
Membership | Royalty amount for membership sales. | This amount represents the total membership charges collected as royalty from the center for membership sales. |
Package | Royalty amount for package sales. | The royalty amount calculated from total package sales made at the center. |
Gift Cards | Royalty amount for gift card sales. | The royalty amount calculated from total gift card sales made at the center. |
Prepaid Card | Royalty amount for prepaid card sales. | The royalty amount calculated from total prepaid card sales made at the center. |
Total Royalty | Total royalty amount from all revenue categories. | The total royalty amount to be collected from the franchisee based on the center’s overall sales during the reporting period. |
Note
For accrual accounting, the amount includes cash equivalent payments and redemptions, whereas for cash and modified cash, it only includes cash equivalent payments.