meticulous_accounting.jpgPerhaps when you hear “Franchise,” you think of McDonalds. You would be correct, but franchising goes far beyond fast food. A quick check with the American Association of Franchisees and Dealers (AAFD) reveals franchises for sale in:

  • Food and bars
  • Florists
  • Apparel stores
  • Convenience stores
  • Child care
  • Service businesses, including health, hotels, as well as finance, banking, loans, engineering services.


There are even franchise opportunities in internet businesses and some manufacturing. If you’ve had Servpro clean up a basement flood or had your brakes changed at Meineke, you have visited a franchise, owned by a franchisee and purchased or licensed from a franchisor. You’ll find an artisan leather manufacturing franchise for sale in Boulder, Colorado, for $99,000, with a revenue potential of $4 to $5,000 per week (which frankly seems high for specialty goods in a seasonal destination).

Franchising calls for meticulous accounting on both sides, be it from the Servpro franchisee or Servpro itself. As a fast-food franchisee grumbled to us, “Whatever revenue potential you hear, divide by two. Start by subtracting your take-home pay.” More successful owners chalk success up to right time, right place; right choice for the economy; and laser-focused accounting.

The Eclipse Royalty & Rights Management System for Franchisor Based Accounting (ERRMS-FBA) has specific franchisor-based features and is based on Microsoft Dynamics GP. It aggregates royalty accounts income from franchisee processes for recording the typical franchise-based income categories. Typical revenue calculations include:

  • Royalty income
  • Ad revenue
  • Deferred income
  • Loan payments


Once calculations are processed, full integration within Dynamics GP allows automatic capturing of the weekly or monthly revenue streams in a totally hands-free process.

This is the first in a new series of blog posts on franchise accounting, and an extract from the original article published on Microsoft Dynamics World on 26/10/2016. For further information about ERRMS-FBA, visit the solution page, contact us on +1 201 746 6255, or read the managing royalties within franchise accounting blog post:

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