Standard charges

Standard charges are basic charges with predefined terms that franchisers can apply to standard contracts or customer contracts.

There are four types of basic charges with predefined terms that you can define. This table lists the standard charges, their calculations, and definitions:

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 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.