Convert Bank Statements for Franchise Royalty Reports
Franchisees owe royalty and marketing fees on gross sales. Convert bank statements to total settlement deposits, reconcile to POS sales, and back up the royalty report.
TL;DR - Quick Summary
A franchisee owes a royalty, often around 6% of gross sales, plus a marketing fee, and reports those sales to the franchisor each month or week. Converting bank statements to a spreadsheet lets you total settlement deposits, reconcile them against POS gross sales, and keep an audit-ready record behind every royalty report.
Royalty and marketing fees ride on gross sales
Under a franchise agreement, the franchisee pays a royalty on gross sales, commonly in the 4 to 8 percent range and averaging around 6 percent, plus a separate marketing or advertising fund fee that usually runs another 1 to 3 percent. Those are billed monthly, sometimes weekly, and they hinge entirely on the sales figure you report. Because the number drives what you owe, the franchisor cares that it is accurate and complete, and getting it wrong, in either direction, invites a correction or an audit.
Deposits corroborate, not equal, gross sales
It is worth being precise: your bank deposits are not the same as gross sales. Card settlements arrive net of processor fees and a day or two late, cash deposits lag the sale, and refunds and chargebacks muddy the total. Gross sales come from the point-of-sale system. What the bank statement gives you is an independent, hard record of money actually received, which is exactly what you use to corroborate the POS figure and catch a gap between what rang up and what landed.
Totaling and reconciling by period
Converting the statements to a spreadsheet makes the cross-check quick. You filter to deposits, separate card settlements from cash, and total them for the reporting period the franchisor uses. Set that beside the POS gross sales for the same period and the two should tie once you account for fees, timing, and refunds. When they do not, the spreadsheet shows you where, a missing deposit, a settlement that slipped into the next period, before the number goes onto a royalty report.
Audit-ready documentation
Franchise agreements grant the franchisor audit rights, spelled out in the Franchise Disclosure Document, to inspect the records behind your reported sales. A converted spreadsheet that totals the deposits and reconciles them to POS for each period is the documentation that satisfies that inspection: a clean trail from the bank statement to the figure you reported. Keeping it as you go means an audit is a matter of handing over a file, not reconstructing months of activity under pressure.
Accuracy and privacy
Because the reported figure sets what you owe and what an auditor checks, every deposit is reviewable in the converter before export, so the totals rest on accurate numbers. The output is a clean spreadsheet ready to total and reconcile. Since the statements hold real business activity, they are processed to build the spreadsheet and then deleted automatically, with nothing kept on a server afterward.
How it works
- Convert the statements: Convert the reporting period's bank statements into a CSV or Excel spreadsheet.
- Total the deposits: Filter to deposits, separate card settlements from cash, and total them for the period.
- Reconcile to POS: Compare the deposit total to POS gross sales, accounting for processor fees, timing, and refunds.
- Keep the backup: Save the reconciled spreadsheet as documentation behind the royalty report and any audit.
Comparison
| Task | By hand | From a spreadsheet |
|---|---|---|
| Total deposits per period | Add up the PDF | Sum a column |
| Reconcile to POS sales | Manual compare | Side by side |
| Separate card from cash | Eyeball | Filter |
| Explain a gap | Guesswork | Trace the row |
| Audit backup | Scattered | One file |
A month of statements totals settlement deposits in about 45 seconds. Convert your statements now.
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