Time to Complete lesson: 5:34 min video / 20 min reading

As defined in the Franchise Agreement, you are required to process reports and provide payments and financial reports at certain designated periods. This process has been developed over many years of trial and error, to create the most efficient system to help you manage your business, and for PWSA to know where we can assist you in achieving your goals.

As part of the day-to-day operations there are necessary administration processes that you will be required to complete. Each franchisee will operate this part of their business in a format that best suits their work schedule and lifestyle, (& as recommended by their accountant), and therefore the below example is a recommended process only.

Under the Franchise Agreement, you are also required to provide Monthly, Quarterly and Annual reporting. These have been outlined below.

2.5.1 Daily/Weekly

Successful business owners manage their businesses efficiently. By attending to some simple daily tasks, you will remain compliant with your Franchise Agreement, and stay on top of your business administration. As the saying goes, “why put off till tomorrow what you can do today!”

Some of the daily/weekly tasks you will need to complete include;

Database - Pristine Water Systems Database:

Franchisees are required to update customer/activity data into PWS Database on a daily/weekly basis.
Processes for PWS Database procedure are detailed later in this Module in section 4.0 Online Administration.
Place any orders for Products
Review “Bring Ups” for the coming/following week. As discussed later in this Module, the Bring Ups section of the database provides you with a list of clients who previously have been serviced and are coming due for a Tank clean or filter replacement.

Some of your Daily/Weekly tasks include;

Update customer sales data into bookkeeping software package on a weekly basis.
Complete banking deposit processes (recommend keeping a record of corresponding invoice of the payment method (credit card, cheque, cash) that these payments relate to.
Check bank statements online (if available) for online payments of outstanding invoices (Reconcile Bank Statement).
Move invoice from outstanding file to completed files, updating the office use only section of the invoice.
Contact all 7-day debtors via telephone. We recommend obtaining credit card details if possible. Outstanding debtors are monies owed to you, so stay on top of this or you will be limiting your cash flow.
If no response from 7-day debtors, arrange a debtor letter for 7-day + outstanding accounts to be sent.

If you prefer to maintain a ‘paperless office’, you might consider scanning and filing completed invoices. Otherwise, maintaining a simple filing system at home will help for any future reference.

2.5.2 Monthly

Taking the time out to review your business on a monthly basis will help you “Work ON your business”, whereas your day to day operations are working IN your business.

In addition to stepping back to see the broader picture, your PWSA franchise agreement stipulates certain payments. Franchisees are required to make prompt payment of all accounts. Your monthly reporting and payment obligations include:

Pay accounts to PWSA including:

Service Fee (Franchise Royalties),
Marketing Fee (Advertising Levy), and
Call Centre service fees

Product Purchases (Bi-monthly)

Payments are to be made within the specified PWSA terms for accounts and payment.

Franchisees are aware that any amounts overdue or in arrears include a provision for the inclusion of interest. See point 2.4.5 below or Refer to Franchise Agreement

Accounts Payable Timetable

PWSA payment terms on product purchases etc. are a 15-day account. This means purchases are made from the 1st of the month to the close of the business on the 15th of the month is due for payment by the last day of the calendar month.

Purchases are made from the 16th of the month to the close of the business on the last day of the calendar month is due for payment by the 15th day of the calendar month.

As the below calendar depicts, from the above table, all accounts payable are due either on the 15^th or Last day of each month:

Table 2.2.6

Account Payments - Franchisees payment of Accounts (goods purchased) to PWSA:

Invoices raised between 1st and 15th of the month = payment due in full by the last day of month.
Invoices raised between 16th and last day of the month = payable in full by the 15th day of month.

Call Centre Services

1300 National Call Centre, Franchisees payment of accounts to PWSA. This includes:

Invoices raised for Insight Call Centre Services = payment due in full by the last day of each calendar month via direct deposit.
Invoices raised for Answering Service – Monthly Fee = payment due in full by the 15th day of each calendar month via direct deposit.

Franchise Service Fee

Service Fee / Royalty = Franchisee payment of a Franchise Support Fee is payable to PWSA ($ including. GST) by 5.00pm the last day of each calendar month via direct deposit. Refer to schedule Item 48 of the Franchise Agreement.

Franchise Marketing Fee

Marketing Fee / Advertising Levy = Franchisee payment of a Marketing Fee is payable to PWSA ($ including. GST) by 5.00pm the last day of each calendar month via direct deposit. Refer to schedule Item 39 of the Franchise Agreement.

2.5.3 Quarterly

New Franchisee’s, for the first 12-months (or at PWSA’s discretion), are required to provide Quarterly financial updates of your business. We have stipulated this in the Franchise Agreement in an effort to help you as much as possible through your first year of operation.

As this period will include many changes for you personally and professionally, PWSA wants to make sure you start your business with the opportunity for as much success as possible.

The Quarterly update timetable for new franchisees is required to be provided by a certified (CPA or CA) accountant. This will include;

A quarterly Financial Report, and
Profit and Loss Statement.

Due dates for the quarterly reporting periods are:

Quarter One: 01 Jan – 31 Mar by 5.00pm on the 14th day of April
Quarter Two: 01 Apr – 30 Jun by 5.00pm on the 14th day of July
Quarter Three: 01 Jul – 30 Sep by 5.00pm on the 14th day of October
Quarter Four: 01 Oct – 31 Dec by 5.00pm on the 14th day of January

For new and existing franchisees’ who have surpassed their first 12-month period, whilst it is not an obligation of PWSA and your franchise agreement, as a business owner/operator/employer, you are still obliged by law to submit a Business Activity Statement (BAS) to the Australian Tax Office (ATO).

We have found that most franchise owners will submit their BAS paperwork on a Quarterly basis, and make payments or GST. Although there is an option for this to be submitted monthly if you prefer.

2.5.4 Annually

On an annual basis, Franchisees are to provide a copy of financial statements (Returns) for the Franchise Business financial year (including profit and loss statement and balance sheet) certified by a Chartered Practicing Accountant (CPA) or Chartered Accountant (CA).

Refer to Franchise Agreement

In addition, Franchisee’s are to provide annually a copy of their Insurance Certificate of Currency for insurance cover (Vehicle & Public Liability) at least one week prior to the existing policy expiring.

Refer to Franchise Agreement

The Franchisee is required to pay the Franchisor on each anniversary, for Five (5) new uniform shirts.

Refer to Franchise Agreement

2.5.5 Default Interest Rates

Franchisees are aware that any amounts overdue or in arrears include a provision for the inclusion of default interest.

“The Default Interest Rate is the prevailing pre-judgment interest rate of the relevant Court which is regularly published at the following websites:

http://www.fedcourt.gov.au/forms-and-fees/interest-rates

http://www.courts.qld.gov.au/courts-calculator/interest-rates

Refer to Franchise Agreement

2.5.6 Administration Fee

PWSA introduced a provision for an administration fee of $30.00. The introduction of this fee is to encourage payments to be made by the due dates: Eg. Please pay accounts by the due date to avoid an administration fee.

Administration Fee

The Administration fee is $30.00 plus GST, payable on each and every occasion where the Service Fee, Marketing Fee or other accounts is paid or credited by the Franchisee to the Franchisor more than seven (7) days after the due date.

This fee is not an additional penalty; it is a mechanism to encourage the required payment within the previously agreed payment terms.

The introduction of this fee is in no way a revenue raising charge, but is to cover additional administration costs that are involved in following up and processing outstanding accounts.

The Administration Fee is defined in the Franchise Agreement*, Clause 4.5 Administration Fee:

The Franchisee acknowledges that the Franchisor requires that the Franchisee must make payments to the Franchisor or any Associate of the Franchisor in accordance with this Agreement and if the Franchisee does not make any payment on the date due then the Franchisor will require the Franchisee to pay an amount of $30.00 plus GST if it is not received by or credited to the Franchisor or any Associate’s account within two (2) Business Days of the date due.
The Franchisee acknowledges that the payment in Clause 4.5 (a) is in addition to any amount calculated as Default Interest Rate and further that the Administration Fee is to reimburse the Franchisor for out-of-pocket expenses in collecting any payments not paid on the date due and is not in the form of a penalty.

*(Agreements dated from January 2015)

2.5.7 Regular Late Payments

In the event that a franchisee consistently (three (3) or more occasions in a six (6) month period) makes payment for accounts later than the above agreed payment dates, Pristine Water Systems Franchising (Franchisor), reserves the right to revise the trading terms to seven (7) day trading account terms only.

2.5.8 Security

Ensure all money / cash, cheques or credit card details are securely kept inside your vehicle. Vehicle should be locked at all times if unattended.

Ensure all manuals, procedures and any PWS documents are securely stored at all times. Remember these are our business systems, do not give our secrets and IP (protect your business).

Please ensure mobile phones, computer equipment and other property is correctly secured from the general public and persons at all times.

2.5 Franchisee Reporting & Payment Processes

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1.0 Introduction

2.0 Franchise Service Fee

3.0 Franchisee Obligations

4.0 Franchisor - Franchisee Structure

5.0 Creating a Successful Franchise Business

6.0 Franchisee Support

Module 1 Appendix Items

Module 1 Quiz

1.0 Introduction

2.0 Administration

3.0 Franchise Inventory Lists

4.0 PODAC (Pristine Online Data Accounts & Clients)

5.0 ITF - In The Field APP

6.0 PWS Social Media Policy Guidelines

Module 2 - Appendix

Module 2 Quiz

1.0 Background of the Water Industry

2.0 Australian Drinking Water Guidelines (ADWG) Introduction

3.0 Common Water Borne Diseases

4.0 Chemicals and Substances found in Water

5.0 Pristine Water Systems Chemicals and Treatments

6.0 Water Testing/Analysis & Results

7.0 Industry Certifications

8.0 Safe Work Australia / Workplace Health & Safety / Occupational Health & Safety

9.0 Filtration & UV Products

10.0 Types of Tanks

11.0 Other PWS Products & Equipment

12.0 Glossary of Terms

Module 3 - Appendix

Module 3 Quiz

1.0 Introduction

2.0 The PWS Process

3.0 Planning your Work Schedule

4.0 Planning Product Ordering

5.0 Water Testing

6.0 AqueousPro™ 50 Water Sanitiser

7.0 Water Tank Cleaning

8.0 Filtration / Sterilisation Supply (Assembly)

9.0 Ongoing Service & Maintenance

10.0 PWS Standards

11.0 AqueousAir™ Assembly & Installation Instructions

Module 4 - Appendix

Module 4 Quiz

Module 5 Video Lessons

1.0 Introduction

2.0 Advertising & Marketing

3.0 Planning your Advertising & Marketing

4.0 Selling PWS / Selling Yourself

5.0 Assessments & Quoting

6.0 Invoicing

Module 5 Appendix

Module 5 Quiz

1.0 Introduction

2.0 Vehicle Maintenance

3.0 Equipment Maintenance

4.0 Process for Equipment Replacement / PWS Repair Request

Module 6 Quiz

PWSA 2022 Conference