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Using Partial Royalty Exemptions

This article instructs users on how to use the Partial Royalty Exemption feature.

Updated over 3 weeks ago

Royalty exemptions can help you maintain your profit on high-cost items with low margins. Follow this step-by-step guide to learn how to apply one.

We recommend using this feature when:
• You're selling a high-value item (e.g., commercial A/C unit).
• Your profit margin on the sale is relatively small.
• Paying the full royalty would significantly reduce your earnings.

Note: If you are interested in enabling Flat Rate Exemptions for your account, please contact your Account Manager or Support.

Enabling Royalty Exemption

The steps listed below provide instructions on how to turn on Partial Royalty Exemptions for a Franchisee.

  1. From the left-hand navigation on the Portal homescreen, click Products & Services.
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    The Product & Services page appears.
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  2. Click Create Product & Services.
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    The Create Product form displays.
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  3. Select Product, Service, or Bundle using the button next to each option.
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  4. Complete the available form fields (fields marked with an * are required):

    1. Name: Enter a name for the product, service, or bundle

    2. SKU: Enter the product, service, or bundle's SKU

    3. Description: Enter in a description of the product, service, or bundle, if applicable

    4. Taxable: Use the On/Off toggle to select if the product, service, or bundle can be taxed or not

    5. Commissionable: Use the On/Off toggle to select if the product, service, or bundle is capable of being commissioned or not

    6. Royalty Exempt: Use the On/Off toggle to select if the product, service, or bundle is eligible to be exempt from royalties or not

      1. If you set the toggle to ON, two additional fields appear: Royalty Exempt Percent and Royalty Exempt Flat Rate
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        1. Royalty Exempt Percent: If entering a percentage, enter the percentage amount (defaults to 100)

        2. Royalty Exempt Flat Rate: If entering a flat rate, enter the rate amount

    7. Units: If applicable, use the drop-down to select the number of units for this product, service, or bundle

    8. Cost: Enter the cost of the product, service, or bundle

    9. Price: Enter the price for which the product, service, or bundle is sold

  5. Click Save.
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    The product, service, or bundle is saved. The record for the product, service, or bundle appears.
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    ​Note: The record provides a banner stating: "This product is marked as Royalty Exempt, but has no royalty exemption details. Please provide royalty exemption details in the Royalty Exempt section to have the exemption applied on future invoices."
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  6. Scroll down to the Royalty Exemptions section.
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  7. Click the down arrow to expand the section, then click + Add new.
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    The Royalty Request Exemption pop-up appears.
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  8. Complete the available fields (fields marked with an * are required):

    1. Description: Enter a description of the royalty exemption request

    2. File Name: Automatically populates with the name of your selected file to upload

    3. File Upload: Provide supported documentation for your request. Click and drag a file for upload or use the Select files button select a file from your File Explorer.
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  9. Click Save.
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    The details are saved in the Royalty Exemption section.
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    The exemption is created for the record showing the requested royalty exemption in the General section.
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    In order for your royalty exemption request to be sent to the francisor for approval, apply the royalty exemption to an invoice using the instructions below (Applying a Royalty Exemption).

Applying a Royalty Exemption

  1. From the left-hand navigation on the Portal homescreen, click Invoices.
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    The Invoices page appears.
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  2. Navigate to the invoice where the product or service is listed and click on the corresponding row to open the invoice or click Create Invoice to create a new invoice.

  3. Find the line item where you want to apply the exemption, and click the Edit icon.
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  4. In the Royalty Exception section, click the “Add New” button to open the exemption form.


    A pop-up window appears.
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  5. In the “Amount ($)” field, enter the dollar amount you want exempted.
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    ​Note: Do not enter a negative number, a number exceeding the record's price, or commas (use a dot, such as .25 , for decimals).

    o This may auto-fill based on previous exemptions or item pricing.

    o You can change it manually if needed.
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    If a royalty % exemption was already applied, you’ll see:

    o The previous exemption amount

    o The original item price

    o The percentage that was used
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    A message will appear if there’s already an exemption: "This amount includes a previously applied royalty exemption."
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  6. Click Save.
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    The Royalty Exemption request is sent to the Francisor.
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Processing a Royalty Exemption Request

Please use the following instructions if you are a Francisor and have received a Royalty Exemption request.

  1. From the left-hand navigation on the Portal homescreen, click Royalties or Actions > Exemptions.
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    1. From the Royalties page, locate the line corresponding to the request you would like to manage, and check the checkbox in the corresponding row.
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      1. Click Approve or Reject.
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    2. From the Exemptions page, locate the line corresponding to the request you would like to manage, and click the Edit, Approve, or Decline button.
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      Your response to the request is saved and notification is sent to the requestor (francisee).
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Royalty Exemption Audit Tracking

To ensure transparency, changes to exemptions are logged when a user modifies the Amount field and saves the changes.

Audit history is available in the Invoice Audit History section.

Logged Details

  • Original amount

  • New amount

  • Date and time of the change

  • User who made the update


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