Standard charges
Standard charges are basic charges with predefined terms that franchisers can apply to standard contracts or customer contracts.
This table defines the basic charges with predefined terms that you can apply to contracts. Before you add a charge to a contract, you must create a company calendar and company options.
Standard Charges | Calculations are based on | Definition |
---|---|---|
Sales-based | Actual sales for a cycle and a predefined percentage of sales | Sales-based charges are costs applied to customer accounts such as royalties, rent, national advertising, local advertising cooperatives, and secondary advertising cooperatives. |
Sales-based sliding scale | Actual sales for a cycle and a predefined table that applies different percentages to portions of actual sales for a cycle to compute the charge | A sliding scale is an optional table that consists of user-selected values that are used to calculate a sales-based charge. |
Note-based | Predefined note payments | Note-based standard charges require a payment of principal and interest for a debt that the customer owes the company. |
Special | User-defined amounts | Special charges are for purchases made for the franchise, tax billings, and miscellaneous charges or adjustments. They are not sales-based or note-based. |