How to Request the Initial Franchise Fee From a New Franchisee in FranConnect

FranConnect has recently rolled out a new Sign to Pay feature leveraging an integration with Flywire. Designed with efficiency, security, and simplicity in mind, Sign to Pay redefines the initial franchise fee collection process, streamlining operations, and accelerating transactions. This comprehensive guide provides valuable insights into Sign to Pay's functionality, enabling you to harness its full potential and optimize your franchise business.

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Requesting the Initial Franchise Fee Payment

To request the initial franchise fee payment, first log into your FranConnect environment. Click Sales on the left-hand sidebar and then select Lead Management from the ensuing drop-down menu.

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On the following page, click the name of the lead from whom you wish to receive payment. From their profile page, click the Compliance tab on the left-hand sidebar.

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Scroll down to the "Franchise Fee and Signed Agreements Received" section of this page. Enter the amount you wish to request based on the Initial Franchise Fee amount in the Franchise Agreement for the lead.

Note: The payment system accepts amounts up to $150,000.

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After verifying the entered information, scroll to the bottom of the page and click Save. Next, click the Request Payment button.

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Confirm the lead's contact information and the Initial Franchise Fee amount in the pop-up window. Once you have confirmed that the information you have entered is correct, click REQUEST PAYMENT at the bottom of the pop-up window.

Note: Once the payment request has been initiated, you will need to reach out to FranConnect customer service to change any details of the request or submit a new one from a new lead record.

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If everything worked correctly, you will see the following output.

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An email will be sent to the lead/new franchisee with an access link for the FDD Portal, where the lead can make the payment. If you also used FranConnect for the Item 23 process, then the franchisee will already be familiar with this portal.

Checking the Status of the Initial Franchise Fee Payment

There are several different statuses that a payment can have:

  • Initiated: A payment process has been started
  • Guaranteed: Ensures timely delivery of funds with no surprises in fees or delays
  • Processed: Payment has been successfully authorized and funds have been transferred
  • Delivered: Payment has been received
  • Cancelled: Payment has been initiated or completed but has been marked as cancelled by a party to the transaction
  • Failed: Payment was not successful (potential reasons include insufficient funds, an invalid payment method, or a declined authorization)
  • Refund: A refund has been issued for the payment

To check the status of the payment, navigate back to the lead profile as we did in the section above. From the Primary Info tab, scroll down to "ACTIVITY HISTORY" and click Payment History.

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You will see the following pop-up window that displays the status of the initial franchise fee payment.

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Conclusion

Having read this article, you are now equipped with the knowledge to confidently request an initial franchise fee payment from a new franchisee and effortlessly check its status directly from your FranConnect environment. This streamlined payment process will enable you to efficiently manage franchise fees and ensure smooth financial transactions for your franchise business. Empowered with these insights, you can now navigate the payment processing system with ease, optimizing your franchise operations for success.

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