Promissory Notes functionality is a part of the ServiceBridge Dynamic Royalties Framework.
As a franchise manager you can issue and manage Promissory Notes in ServiceBridge having an automated way to include payments into the royalty reports for your franchisees.
To create a promissory note, you need to go to the Companies section in the main menu at the left of your screen and select a franchisee company to which you are giving the Promissory Note:
Promissory Notes Setup
When the Company Details page opens, navigate to the Promissory Notes section and press the (+Add new) button:
The pop-up window appears where you can enter details of new promissory note:
You should enter the Name, Start Date, Payment Amount and Last Payment date as required fields.
Start Date is the date when the first note payment will be included in a royalty report.
Annual Interest Rate is the annual interest what is included in the defined note payment. Depending on your agreement, the annual interest rate may be any rate as 6.5%, 8%, 12%, etc.
Frequency: you can define whether the note payments should be included weekly or monthly in a royalty report.
Payment Amount $ is the amount that should be included in a royalty report and paid weekly or monthly, according to the Frequency value.
Last Payment is the date of the last payment that will be included in a royalty report.
You can also mark the Promissory Note as Suspended if for some reason you want to suspend the promissory note payments to be added to future royalty reports for the franchisee company. This can be done now or later at any moment.
Once you click Save, new promissory note appears in the Promissory Notes section in the Company Details page. You can always edit this Promissory Note, or delete it:
If a franchisee company has more than one promissory note, you can sort it by Name, Description, Start Date, Last Payment, Payment amount and Suspension. To do so, click on the header of the column and the grid will be sorted:
Promissory Note Payments
The promissory note payments will appear on the franchisees' royalty reports automatically. The total royalty report amount automatically includes the promissory notes payment.
In case when a franchisee has multiple active promissory notes, the payments for all of those notes are added to the franchisee's royalty report according to the promissory note and royalty report generation frequency. For example, if the royalty reports for a franchisee are generated weekly and one of the promissory notes has the Weekly frequency but another note has the Monthly frequency, the weekly promissory note payment will appear in every royalty report and the monthly note payment will appear in every fourth or fifth royalty report.
To see more details, on the royalty report details page, navigate to the Promissory Note Details section, where you will find details of each applied promissory note payments:
You can sort this grid by Name, Description, Starting Balance, Interest Amount, Principal Amount, Ending Balance, and Payment Amount. Just click the header of the column and the grid will be sorted. Also, you can search for the particular Promissory Note by typing the name of the Promissory Note in the search field.