Franchisor Services
Royalty Recovery Group was founded by Barry Knepper, C.P.A., a senior financial executive with more than 35 years of experience. He is a recognized authority in franchise royalty auditing and has also has served as the CFO of franchisors Arthur Treacher's Fish and Chips, Pudgies Famous Chicken, Wall Street Deli, Burritoville, and Desert Moon Café.
Royalty Recovery Group is the perfect firm to audit your franchisee because we know from our first hand experience in franchise management that the franchisor/franchisee relationship is critical to the success of the franchisor. We do everything we can not to disturb that relationship. Because we are an independent third party, we are in the position to minimize conflict between you and your franchisee by providing independent objective verification of royalties due. Royalties are not typically reported as accurately as franchisors believe. If franchisees believe that they will be audited periodically, they are much more likely to report and pay royalties accurately.
How do you benefit from independent royalty audits?
- Detection of understatement of revenues
- Ensure that royalties are reported and paid correctly before negative trends develop
- If your franchise agreement includes a provision that audit costs are to be paid by franchisees if there is an understatement of royalties, your franchisees have a strong incentive to report royalties accurately
- Auditing a small percentage of your franchisees each year increases reported royalties throughout the franchise system
How do your franchisees benefit from independent audits?
- Royalty compliance ensures the financial stability of the franchisor, allowing it to provide support to all franchisees
- Audits assure franchisees that all are contributing to the success of the system
- Assurance that all sales are reported builds confidence among franchisees that they are paying their fair share of costs such as advertising
- An audit may identify poor franchisee inventory control and loss prevention systems
- Franchisee profitability increases when accounting weaknesses are identified during an audit