Set up and collect royalties with Square for Franchises
About royalties
Franchisors collect fees from their franchisees through Square Invoices. Royalties are ongoing payments made by franchisees to the franchisor.
Royalty fees are typically calculated as a percentage of the franchisee’s gross revenue, though some franchisors may charge a fixed amount.
Before you begin
To enable royalty fees collection, contact your account manager.
Royalty collection requires access to both your Square Dashboard and Square for Franchises dashboard.
Franchisors can access royalty reports through their Square for Franchises dashboard.
Locations must already be assigned to a fee to be invoiced. Invoice settings can be edited through the Square Dashboard. Learn more about creating and sending invoices.
Create royalty fees
You can create royalty fees in the Reports section of your Square for Franchises dashboard.
Sign in to your Square for Franchises dashboard, and go to Reports > Franchise reports > Royalties & Fees.
Under Summary, select a location and click Create royalty fee. If you have previously created fees, click Add rate.
Fill in the fee details, and select whether it is either a percentage or fixed-based fee.
Assign locations that this royalty fee will be applied to.
Click Create.
Collect royalties
Once a royalty fee is created and assigned to locations, you can create an invoice to collect royalty fees.
Sign in to your Square for Franchises dashboard, and go to Reports > Franchise reports > Royalties & Fees.
Use the date selector tool to refine a date range and select the relevant filters to view your report.
Select a location to invoice, then select Send invoice or Send invoice to merchant, depending on whether you are sending the invoice at the location or merchant level. This will redirect you to your Square Dashboard.
The invoice will be pre-populated based on the previously created royalty fees.
Fill in the franchisee’s details as needed and select the available payment method. You also have the option to save a payment method to charge future invoices to automatically.
Review the invoice then click Send.