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Most ERPs don’t have the granular capability to archive and connect multiple service contracts to the recurring invoices attached to them. That means franchise organizations have to deal with contract invoices separately, which can be both resource-intensive and time consuming.
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Often contracts for individual franchises are unique to that franchise location only. Services such as cleaning, maintenance and utilities may not be provided by the franchise organization. Some franchisees may choose a local supplier for their contract services and many service companies are bound by the geographical area they serve.
Managing and processing multiple contracts for hundreds of franchisees can be a bit daunting. Without some form of automation, finance administrators have to handle both contract documents and the accompanying recurring invoices manually. That means numerous spreadsheets, file folders with contracts, and emails are the only way to keep up.
Not only do recurring invoices have to be processed and paid, administrators have to check that invoices match contract terms. Some services do not provide an invoice with each monthly payment so an internal invoice has to be generated.
As well, contracts come with varying terms and contract completion dates. Not keeping track of all the details that accompany a contract can mean losing the advantage when renewing a contract on better terms, dealing with downtime when a contract expires without any notifications, overpaying or paying the wrong amounts, or having the franchise credit rating be affected by missed payments.
This is where a solution like Rillion can make a difference. Rillion’s contract module can automate and optimize the contract/recurring invoice process, saving the franchise organization time and reducing the risk of missed payments or renewal opportunities.
Repeat invoices such as rentals, phone, internet contracts and other utilities are automatically matched to account numbers or contracts, posted to the proper charge codes, and approved for payment.
In any given franchise organization about 15-25% of recurring invoices can be set up as contracts or agreements. Some franchise organizations might have more than 50% of their inbound invoices set up as contract/agreements and handled automatically if they are within tolerances.
When the date is set for the renegotiation, extension or termination of a contract, the responsible person in the organization is notified. The reminder e-mail includes information about the contract details and any actions that need to be completed.
When an invoice is expected to arrive and doesn’t, the team member responsible for the contract will get an email notification. That frees them up from relying on spreadsheets to track invoices for essential services the organization relies on.
Different types of contracts can be archived and classified. Administrators can decide who will have permissions to view specific contracts, and specify which contracts are confidential.
In some cases, for instance an office lease, a landlord is not required to send an invoice every month. Rillion offers franchise organizations the option of self-billing. This means that a supplier invoice is automatically created in the system based on the contract terms with the supplier.
To find out more about Rillion’s AP Automation for Franchises, click here.