If you own a franchise, the corporate office (the franchiser) sets the
royalty or franchise fees for which you're responsible. Royalties may be
based on sales volume, a net sales figure, the population of the area
you're serving, or any other configuration established by the corporate
Some franchisers bill their franchisees for the exact fee they expect. (If
that is your situation, you can enter the franchise fee as a bill in
QuickBooks.) Others, however, expect franchisees to send in a sales report, and
the fee is based on a percentage of the sales shown on that report.
If you need to determine your sales volume for the month (or the week, or
another period), you can create a QuickBooks sales report. If you've been
entering customer invoices in QuickBooks (or a daily sales summary based on
your cash register tape), you can view a sales report by following the steps
Go to the Reports menu, choose Sales, and then click Sales by Item
Click the Dates drop-down list and choose a time period for which you want to
pay a royalty or franchise fee.
The Amount column shows your total sales for each item. You can see the
total sales figure for all your items by looking at the last line in the Amount
Click the Memorize button.
QuickBooks memorizes report settings, not data. This lets you quickly
display your customized sales report. To recall the memorized report, go to the Reports menu, choose Memorized Report List, and then click Memorized Reports.
By using the total sales figure, you can calculate what your royalty payment
should be. You can then go to the Write Checks window to enter the payment.