Hospitality

Franchise Royalty Fee Payment

Recording the monthly royalty fee paid to the brand for using their name and systems.

Account NameTypeDebit ($)Credit ($)
Franchise Fees: RoyaltiesExpense (+)2,000.00-
Accounts Payable: BrandLiability (+)-2,000.00

💡 Accountant's Note

Franchise fees are usually a percentage of Room Revenue only. This is separate from management fees.

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