Royalty Assurance.
Most franchise-based operations rely on royalty and
advertising fees from their franchisee as a large portion of
their income. A considerable amount of these payments are
percentage-based. Franchisees who wish to increase their
personal income and lower the amount paid to the franchisor
may simply lower the weekly/monthly sales amount reported.
For each franchise business with $800,000 in annual sales
and underreporting of 10% of sales with a 6% royalty may
loose $4,800 per incident.
Our research shows that those who wish to defraud the parent
organization by hiding sales develop complex schemes that
are not easy to detect with simple audits and other basic
sales assurance measures. RRG’s strategy for detecting these
schemes has been proven successful with millions of dollars
returned to our clients.
Benefits of a Royalty Assurance Program
- Income from restitution collected from willful sales
underreporting
- Gradual increase of reported sales through the halo effect
- Additional fee-based income
- Long-term confidence in accurate reporting of sales
- Stronger brand integrity
- Overall improved performance
Covert Video Surveillance
Numerous types of underreporting practices take place in all
retail environments. Transactions are not processed through
a cash register, not registered for the correct amount,
sweet hearted, etc. The ability to capture this dishonest
activity is paramount and can be used to prove cases of
Franchise underreporting, skimming, sweet hearting and other
sales integrity issues. These same types of fraudulent
activity can also be captured through the use of Time Lapse
Covert Video.
Benefits
- Evidentiary purposes
- Sales underreporting documentation
- Documenting Trademark infringements
- Documenting the use of pirated products or services
- Positive identification of the underreporting offender
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