The Agreement Version is the configuration set up under Admin > Finance > Agreement Versions so the system knows how to calculate the royalty. At it's very basic level, it defines the percent or fee to calculate the royalties owed by the Franchisee to the Franchisor. Once the agreement version is defined, it has to be mapped to the location as shown in the screen shot below also found under: Admin > Franchise Location > Manage Franchise Locations > Modify Franchise Location.
Note: For a location to show up in the Finance module, it has to have the Agreement Version mapped and a date for the Royalty Reporting Start Date. Otherwise, FranConnect would not know when to start, how frequent and the calculation needed to generate an invoice.
Agreement version allows you to configure various royalty fees involved in your business. Once mapped with Franchise(s) / Store Locations, agreement version calculates royalty as per your configuration.
You have the flexibility to configure your royalty fees to be calculated on percentage basis or as a fixed amount.
Also, if your royalty fees vary with different sales amount ranges or time period, you can use Agreement rule.
Agreement Rule Specifies the rule in which Royalty fees are computed if it varies with sales range, time period, or number of months of store operations.
The Minimum Cap ($) : Specifies the minimum royalty to be paid in case the calculated royalty is less than Min Cap.
The Max Cap ($) : Specifies the maximum royalty to be paid in case the calculated royalty is more than Max Cap.