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Small and medium business | Business Central, N...
Suggested Answer

How are franchise royalties typically managed in Business Central?

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Posted on by

Hi everyone,

I'm researching how businesses using Dynamics 365 Business Central manage franchise royalty calculations and reporting.

For organizations that collect royalties from franchisees, I would appreciate hearing about your current approach:

  • Do you calculate royalties directly in Business Central or outside the system?
  • Are royalties managed through Excel spreadsheets, custom development, or a third-party solution?
  • How do you handle tiered royalty rates, minimum guarantees, and royalty statements?
  • How do franchisees submit their sales/revenue figures for royalty calculations?
  • Are there any challenges around audit trails, disputes, GST/VAT handling, or compliance reporting?

I'm particularly interested in understanding common processes, pain points, and whether there are existing solutions that work well within the Business Central ecosystem.

Any insights or experiences would be greatly appreciated.

Note: 
While my primary interest is in Australian franchisors, I'm interested in hearing experiences from any region using Business Central for royalty management.

Thank you.

  • Suggested answer
    Khushbu Rajvi. Profile Picture
    23,144 Super User 2026 Season 2 on at
  • Suggested answer
    Kamal Khakhkhar Profile Picture
    3,608 Super User 2026 Season 2 on at
    Hii ,
    there as per requirement you can create a royalty related system . for that you can refer Rewards Related Sample code .

    https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/developer/devenv-extension-advanced-example

    you can check this and update as per your requirement.

    If you found answer, mark it verified.

    Thank You.
    Kamal Khakhkhar.
     
  • Suggested answer
    OussamaSabbouh Profile Picture
    19,544 Super User 2026 Season 2 on at
    Hello,
    From my experience, Business Central does not have a standard franchise royalty engine like “royalty contracts / tiers / minimum guarantees / statements” out of the box, so most companies handle this in one of three ways: Excel first, then post invoices/journals in BC; custom BC extension; or external portal/Power Apps/Power Automate where franchisees submit revenue and BC generates the invoice. For a clean BC design, I would usually keep franchisees as Customers, use Dimensions for franchise/site/brand, store submitted sales in a custom table with period/status/audit fields, calculate tiered royalties and minimum guarantees from custom royalty agreement tables, then create Sales Invoices in BC so GST/VAT, posting, statements, credit memos, and audit trail stay standard. Excel works at small volume but becomes painful for disputes, version control, audit evidence, and tax review. If the requirement is advanced royalty automation, note that Microsoft has royalty contract functionality in Dynamics 365 Finance, but that is not the same as standard Business Central functionality.
    Regards,
    Oussama Sabbouh
  • Suggested answer
    YUN ZHU Profile Picture
    103,227 Super User 2026 Season 2 on at
    Since this functionality is not included in the standard BC, you can discuss customization with your parnter or just use an app from another AppSource partner.
     
    Thanks
    ZHU
  • Gerardo Rentería García Profile Picture
    27,621 Super User 2026 Season 2 on at

    Hi, good day
    I hope this can help you, and give you some hints.

    Microsoft Marketplace | cloud solutions, AI apps, and agents

    5 Benefits of Accounts Receivable Software for Franchise Companies

    Best Regards
    Gerardo

  • Suggested answer
    Simon Kimani Profile Picture
    184 on at

    This functionality is not currently available in standard Business Central.

    The link below provides guidance on how to address this requirement using the Acumens Royalties app for Business Central.

    The solution supports the royalty collection process, including the setup and processing of royalty-related transactions.

    What the app provides:

    • Calculate royalties using imported franchisee sales invoices and credit memos.
    • Automatically creates customer invoices for royalties owed to the franchisor.
    • Supports configurable royalty rates and minimum guarantees.
    • Generates royalty statements directly in Business Central.
    • Provides a clear record of the transactions and royalty calculations.

    Check the app here: https://acumens.com/Blog/pay-collect-pay-royalty-commission-business-central

  • Suggested answer
    Ahmad Subhani Profile Picture
    827 on at

    Hi,

    Royalty Management is not available in Standard System. You have to do customization for this.

  • Suggested answer
    AndrewThomas81 Profile Picture
    2,814 Super User 2026 Season 2 on at

    There is nothing standard to fulfil your requirement, you will need to look for extensions on app source or build a custom requirement with your partner

     

    Kind Regards

     

    Andrew Thomas FCCA MCP

    YouTube - Use Business Central

    LinkedIn

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