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Industries

Franchises

NetSuite, built for the business behind the brand— every royalty collected, every location consolidated, every agreement tracked to the day it was signed.
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NETSUITE CONSULTANTS

ERP for Franchises

Franchisors don't run one business — they run several at once: a franchising company, a corporate-unit operator, often a supply-chain or equipment distributor, and a fiduciary for brand and advertising funds. MHI's Franchise IP lets franchise brands run that whole structure inside NetSuite — every fee, every location, every agreement — and creates competitive advantages for this industry

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Franchising is not one business, either. A quick-service beverage brand managing weekly royalty draws across hundreds of stands, a fitness franchisor billing royalty off member dues collected through a separate billing platform, a beauty-services brand blending retail and service revenue across company- owned and franchised locations, and an outdoor-hospitality brand consolidating reservation revenue across owned and franchised properties all call themselves franchisors. What they share is the hard part: revenue that is contract-driven and recurring, fees deferred at signing and earned over agreement terms measured in years or decades, royalties calculated from sales data the franchisor doesn't directly control, and a family of legal entities — franchising company, corporate-unit operator, ad fund, equipment or real estate subsidiary — that all have to consolidate and eliminate cleanly.

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Myers-Holum builds that platform on NetSuite — OneWorld multi-entity consolidation, native WMS and SCM Mobile, Account Reconciliation and Analytics Warehouse — extended with franchise-specific IP developed across quick-service/beverage, fitness, beauty and personal care, specialty retail, outdoor hospitality, and medical aesthetics implementations.
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BUSINESS IMPACT
Furniture companies rarely sit in one box. The same business may build, distribute and sell direct — and each side usually runs on its own system. NetSuite, extended with MHI's furniture IP, puts all three on one platform.
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Franchisor

Automated end-to-end franchise fee billing, deferred revenue recognition with lifecycle true-ups, sales-driven royalty invoicing, and multi-entity consolidation with automated intercompany eliminations across franchising, corporate, marketing, equipment, and real estate entities.

 Franchisee

Independent purchasing and inventory tracking, separate local and national marketing fund accounting, POS-driven royalty calculations, and consolidated reporting and billing across multiple locations under one franchisee.

Multi-Unit / Brand Operator

Accurate store-to-store and cross-entity transfers, consolidated P&L reporting by location, region, and brand, end-to-end supply chain integration, and scalable infrastructure for expanding across new units, markets, and brands.
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REVENUE & ROYALTY MODELS WE SUPPORT

Organized by how revenue is calculated and billed

Most franchise brands don’t sit neatly inside one labeled vertical, so this groups by billing mechanics instead of forcing a visitor to find themselves in a list. Most combine more than one of these patterns, that overlap is why fee structure and billing cadence, not an industry label, should drive the platform.

Sales-based royalty, billed off point-of-sale data

How revenue works

Royalty, technology-fee and brand-fund invoicing driven directly by in-store POS sales, typically weekly or near-weekly across many small-footprint locations.

What the platform handles

  • Local inventory purchasing blended against corporate buying programs

  • Sales-tax treatment that differs by transaction type

  • Intercompany transfers and eliminations between company-owned and franchised locations

Membership/dues-based royalty, billed off an external platform

How revenue works

Royalty and advertising-fund percentages calculated against member dues collected through a separate billing platform, not the ERP itself.

What the platform handles

  • A single periodic draft settling several revenue streams with different recognition rules.

  • A long tail of contractual fees, each with its own trigger and treatment

  • Multi-year deferred-revenue schedules re-pointed when a location is added, dropped or transferred

Reservation-based, seasonal revenue

How revenue works

Royalty and fee invoicing generated from an external franchise-management feed and settled by direct debit.

What the platform handles

  • A large multi-subsidiary structure maintained purely for consolidated reporting

  • Statistical tracking of occupancy, reservation nights and transaction counts alongside financial data

  • Franchisee purchasing activity often entirely outside the ERP

Blended service + retail revenue per location

How revenue works

Weekly royalty on sales plus separate monthly system and marketing fees per location.

What the platform handles

  • Two-way integration with a franchise-management platform for the customer and agreement lifecycle

  • Products distributed to franchisees under one entity while royalty is billed under another

  • Co-op marketing contributions tracked apart from royalty

Membership or package billing with deferred revenue

How revenue works

Revenue recognized as services are delivered rather than at the time of sale.

What the platform handles

  • Drop-ship fulfillment direct to the end customer, with no inventory held on the franchisor’s books

  • Role-based approval routing across a multi-entity, multi-location structure

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Solutions & Areas of Impact

Seven connected areas, following the piece from plan to delivery

Royalty & Franchise-Fee Management
Royalty & Franchise-Fee Management
POS & Channel Integration
Inventory & Supply Chain to Franchisees
Compliance & Franchise Disclosure Reporting
Labor, Commissions & Marketing Fund Accounting
Delivery & Service

Royalty & Franchise-Fee Management

Every fee in the catalog, billed on the cadence it requires and recognized the way the agreement says.
Full franchise-fee catalog automated end to end: initial and area-development fees, royalties, technology fees, brand/marketing fund contributions, transfer, renewal and ad hoc pass-through fees
Royalty billing driven by point-of-sale or member-billing sales data — weekly, twice-monthly or monthly depending on the brand — with summarized AR per franchisee
A long tail of contractual fees (transfer, renewal, late-development, non-compliance, audit, equipment), each with its own trigger and treatment
Revenue deferred at signing and recognized ratably from unit opening, with true-ups for open-date changes, transfers and terminations
One periodic draft or EFT draw settling several revenue streams with different recognition rules, split correctly across accounts

Multi-Unit & Multi-Entity Consolidation

One structure for the franchising company, corporate-unit operator, ad fund and subsidiaries, consolidating and eliminating cleanly.
OneWorld multi-entity structure for the franchising company, corporate-unit operator, ad fund, equipment and real estate subsidiaries
Unit-level chart of accounts and segment design so every location rolls up to franchisee group, region and brand segment for four-wall P&Ls
Designed to scale to new units, new markets and new brands without re-implementation
Automated intercompany journal entries and elimination subsidiaries for consolidated reporting
Consolidated balance sheet, income statement and cash flow at both the subsidiary and consolidated level

POS & Channel Integration

Sales data and agreement events from every location, summarized into the ledger with the detail kept for audit and analytics.
Point-of-sale and member-billing sales data from every location summarized into journal entries, with full transaction detail retained for audit and analytics
E-commerce and drop-ship order flows for franchisee- and customer-facing online sales
Franchise-management-platform integration for customer, contact, agreement and lifecycle events, triggering customers, invoices and revenue schedules in NetSuite
An integration framework built for self-healing reprocessing, balance-and-control validation and end-to-end observability across the many applications a franchise system runs on

Inventory & Supply Chain to Franchisees

For franchisors that also supply product and equipment, from the warehouse to the franchise location.
Corporate-to-franchisee distribution: e-commerce ordering, third-party-logistics fulfillment and transportation management integrated end to end where the franchisor also supplies product
Equipment and build-out tracking for new-unit construction, equipment sales and capital projects from site selection to opening
In-transit inventory visibility from warehouse through delivery and ownership transfer at the franchise location
Intercompany transfer orders and eliminations between company-owned and franchised locations

Compliance & Franchise Disclosure Reporting

Revenue recognition mapped to Franchise Disclosure Document fee terms and agreement lifecycles, not generic ERP defaults.
Revenue-recognition design mapped directly to Franchise Disclosure Document fee terms and agreement lifecycles, not generic ERP defaults
Role-based approval routing for journal entries and franchise-fee adjustments
Deferred-revenue schedules for initial, area-development and successor franchise fees, tracked per contract and re-pointed on transfer or termination
Audit-ready, one-up one-back traceability from a royalty invoice back to the underlying location-level sales detail

Labor, Commissions & Marketing Fund Accounting

Restricted fund accounting, co-op credits and commission structures that sit outside a standard ERP.
National and local advertising/marketing fund contributions segregated into restricted, auditable fund accounting distinct from operating cash
Commission structures for franchise-development and sales staff, including cases that fall outside a standard ERP commissions module
Co-op and local marketing fund credits and shortfalls tracked separately from the core royalty calculation
Payroll and intercompany payroll-allocation flows for shared staff working across franchising and corporate-unit entities

Delivery & Service

Schedule the fleet, track every stop, and handle installation, repairs and warranty work on the same system.
NS Field Service Management for service and installation, where applicable
Track worker and contractor time
Set up onsite services and repairs
Charge for and consume inventory as needed
Warranty tracking
MHI Shipments — track and schedule fleet deliveries
Create batches, pick sheets and BOLs
Delivery and stop tracking
Weight, size and cube tracking
Third-party "best of breed" TMS options already integrated with NetSuite, beyond MHI TMS Lite — Descartes, Dlvry, RFS Freight Management and several others, adding GPS tracking, real-time delivery notifications and third-party freight scheduling
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FUNCTIONALITY

MHI franchise IP

Built on top of NetSuite for the parts of the franchise business that standard ERP doesn't reach.
Added to your NetSuite implementation

What we've built

Automated franchise fee catalog, billing, and invoicing
Integrated ordering, fulfillment, and logistics
Deferred revenue recognition with automated lifecycle true-ups
Equipment and construction project tracking
POS-driven royalty calculations with traceable franchisee billing
Unit-level P&L reporting by region and brand
Multi-entity consolidation and automated intercompany eliminations
International royalty automation
Segregated, auditable marketing fund accounting
Audit-ready financial close and IPO readiness
Franchise platform integration and automated reconciliation

Let’s discuss your next project