Protect Franchise Revenue with Expert Sales Reporting Integrity Audits
Franchise royalty payments are the lifeblood of your brand, but only if every sales dollar is reported accurately according to the franchise agreement. Underreported sales, ghost POS systems, and unaccounted-for revenues can cost franchisors millions in lost royalty income.
Mershimer Group specializes in franchise royalty assurance and compliance audits that safeguard your bottom line. With decades of experience leading audit programs for some of the world’s largest restaurant and retail brands, we provide the expertise and tools to uncover hidden risks, recover lost revenue, and build long-term franchise accountability.
What Is Royalty Assurance?
Royalty Assurance involves performing independent audits and validating sales made by franchisees to ensure compliance with franchise agreements. By verifying reported revenues and identifying discrepancies, franchisors can:
- Protect royalty income
- Maintain brand trust and consistency
- Reduce risk of fraud or misreporting
- Build stronger franchise relationships
Our Royalty Assurance Services
Franchise Royalty Audits
Independent audits to confirm accurate sales reporting across all franchise locations.
Proactive Assurance Programs
Ongoing monitoring and reporting systems are designed to catch issues before they impact revenue.
Fraud Detection & Investigation
Identify hidden sales, unauthorized product sales, and financial report manipulation.
Compliance Reviews
Verify that franchisees follow purchasing, pricing, and reporting requirements outlined in their agreements.
Sales Integrity Auditing
Sales data is the foundation of royalty collection and growth forecasting. When sales reporting lacks integrity, franchisors risk compliance breaches, financial manipulation, and weakened brand trust.
Mershimer Group delivers Sales Integrity Auditing as part of our Royalty Assurance programs. These specialized audits ensure all reported sales are accurate, compliant, and in line with franchise agreements.
POS & Transaction Auditing
Validate point-of-sale systems to confirm all revenue streams are reported.
Exception-Based Reporting
Detect anomalies in discounts, refunds, or adjustments that may indicate manipulation.
Compliance Verification
Ensure adherence to franchise sales definitions, reporting timelines, and financial obligations.
Fraud Detection Programs
Identify ghost registers, unauthorized product sales, and other revenue leaks.
Sales Accuracy Monitoring
Continuous oversight to maintain sales reporting integrity across the network.
Why It Matters
Sales Integrity Auditing protects royalty and advertising fund contributions, strengthens accountability, and reduces opportunities for fraud across the network.
Why Brands Choose Mershimer Group
Proven Expertise
100+ years of combined experience in franchise auditing, compliance, and loss prevention.
Data-Driven Insights
Multi-layered audit software and reporting deliver actionable insights—not noise.
Global Perspective
Audits performed across 50+ countries, with expertise in retail, restaurants, convenience, hospitality, and more.
Hands-On Partnership
We don’t just deliver reports; we guide you through recovery strategies and revenue protection programs.
Common Risk Areas We Uncover
- Underreported or delayed sales (catering, delivery, third-party apps, gift cards)
- Hidden or ghost POS systems
- Unauthorized or untracked income streams (vending, rentals, promotional items)
- Unauthorized deductions (credit card fees, bank charges, local taxes)
- Weak oversight of sub-franchisees or multi-unit operators
The ROI of Royalty Assurance
Brands that invest in Royalty Assurance and Sales Integrity Auditing often see:
- Millions recovered in under-reported royalties
- Long-term reduction in revenue leakage
- Greater franchisee accountability and compliance
- Increased brand value and consistency across markets
Frequently Asked Questions
What is Royalty Assurance in franchising?
Royalty Assurance is the process of auditing and validating franchisee sales to ensure accurate reporting and compliance with franchise agreements. It helps franchisors protect revenue, detect fraud, and build stronger franchise relationships.
How does Sales Integrity Auditing fit into Royalty Assurance?
Sales Integrity Auditing is a key component of Royalty Assurance. It focuses specifically on verifying the accuracy of sales data, detecting anomalies in POS systems, and preventing underreporting or manipulation that can impact royalty payments.
Why are royalty and sales audits important for franchisors?
Without audits, franchisors risk lost revenue from underreported sales, unauthorized deductions, and hidden income streams. Regular audits ensure compliance, strengthen accountability, and protect long-term brand profitability.
What types of risks can these audits uncover?
Common findings include ghost POS systems, delayed or excluded revenue (such as catering or delivery sales), unapproved supplier purchases, and deductions not allowed by the franchise agreement.
How often should franchisors perform Royalty Assurance or Sales Integrity Audits?
Many franchisors benefit from annual audits, while high-risk or fast-growing systems often schedule bi-annual or ongoing monitoring programs to prevent issues before they escalate.
What is the ROI of Royalty Assurance programs?
Brands that implement proactive royalty and sales integrity audits often recover millions in lost royalties, reduce revenue leakage, and improve franchisee accountability across the network.
Protect Your Brand’s Revenue and Sales Integrity
Franchise growth depends on accuracy, compliance, and trust.
Contact Mershimer Group today to learn how our Royalty Assurance programs can safeguard your royalty streams and protect your brand.