What We Can Build

Royalty Intelligence

Royalty collection is the economic engine of every franchise system, yet the calculation process is error-prone and manually intensive. Complex tiered structures, advertising fund contributions, and technology fees compound across hundreds of locations. Forensic auditors report that royalty miscalculations are among the most common findings — often because the work falls to clerical-level employees managing spreadsheets. Underreporting goes undetected for quarters. Your Royalty Manager handles invoicing, but nobody's watching for anomalies.

This capability layers AI-powered anomaly detection on top of Royalty Manager's existing data. It cross-references franchisee-reported revenue against POS data, foot traffic patterns, and comparable location benchmarks to flag underreporting. It predicts delinquency risk 60–90 days before a missed payment, automates complex tiered calculations including advertising fund and technology fee allocations, and generates variance reports that would take your customers' finance teams hours to build manually.

Royalty Intelligence Dashboard — Q1 2025
⚠️3 anomalies detected across 247 locations — estimated underreporting: $42,600
Unit #0142 — Buckhead, GAReported $84K vs. POS indicates $112K · Δ $28K · Pattern: 3 consecutive months
Underreport
Unit #0087 — Jacksonville, FLReported $61K vs. benchmark $72K · Δ $11K · New POS system installed Q4
Investigate
Unit #0231 — Coral Gables, FLReported $93K vs. POS $96.6K · Δ $3.6K · Likely rounding/timing difference
Minor
Unit #0318 — Memphis, TNPayment trending 12 days later each quarter · Cash flow indicators declining
78% risk
Unit #0055 — Birmingham, ALMissed Hub communications · Royalty paid but 8 days late last 2 quarters
54% risk
Auto-Calculated — Unit #0142 Tiered Royalty
Base royalty (6% on first $75K)$4,500
Reduced tier (4% on $75K–$100K)$1,000
Advertising fund (2%)$2,240
Technology fee (flat)$350
Corrected total due$8,090
Projected annual revenue recovery from anomaly detection+$187K
247
Locations Monitored
98.7%
Calculation Accuracy
14 hrs
Staff Time Saved / Mo