Monthly billing in a franchise gym location involves more complexity than a standard subscription business. The franchisee is managing member dues, processing declined payments, handling fee disputes, calculating royalty obligations, timing annual fee charges, and submitting financial reports to corporate. When this work is distributed across a front-desk team without clear ownership, errors compound month over month and discrepancies surface during franchisor audits.
A virtual assistant with access to the gym's billing platform and CRM can own the reconciliation workflow from the first of the month through final reporting. This article details how that workflow operates.
Payment Processing Review
The billing reconciliation process begins on the first business day of each month. The VA pulls the billing run report from the member management platform (ABC Ignite, ClubReady, Mindbody, or the franchise-specific system) and reviews it against three benchmarks: total members billed matches the active member count, total revenue matches the expected dues volume, and any plan changes executed in the prior month are reflected correctly.
Discrepancies at this stage fall into several categories. A member may have been set up on the wrong plan tier due to a data entry error during signup. A promotional discount may have expired but not been removed from the billing record. A freeze that ended may not have triggered billing resumption. Each discrepancy gets logged in a reconciliation tracking sheet with the member name, account number, discrepancy type, and resolution action.
The VA resolves discrepancies that are within their authority to correct: plan tier fixes, promotional code removals, and freeze status updates. Anything that requires a billing adjustment over a defined dollar threshold (typically set by the franchisee as a policy) gets escalated to the GM before correction.
After the billing run is confirmed accurate, the VA runs a comparison against the prior month's figures. Significant membership count changes (more than five percent variance) get a note explaining the cause: new sales volume, cancellations processed, freezes entered. This comparison forms the basis of the monthly report.
Declined Card Follow-Up Sequences
Declined payments are the most time-sensitive billing task. Every day a declined payment sits unresolved is a day of revenue exposure, and members with failed billing often do not realize it until their access is blocked at the door. That access interruption creates a service experience problem on top of the billing problem.
The VA runs a declined card report daily during the first two weeks of the month when the majority of billing attempts occur. The sequence for each declined payment:
Day one of decline: System-generated notification to the member (most franchise platforms handle this automatically). The VA verifies the notification went out and logs the decline with a timestamp.
Day three: VA sends a personal follow-up via SMS with instructions to update the payment method through the member portal or the franchise app. The message is factual and non-threatening. Sample: "Hi [First Name], we had an issue processing your membership payment. You can update your card here: [link]. If you have questions, call us at [number]."
Day seven: VA makes a phone call and sends a follow-up text. If the member's access is scheduled to be suspended at this point per the franchise's policy, the VA communicates that in the message so there are no surprises.
Day fourteen: If still unresolved, the VA escalates to the GM and the account enters the collections process per franchise policy. Some franchise systems have a mandated collections workflow that the franchisee must follow. The VA documents the escalation date and reason in the member file.
Members who update their payment method mid-sequence get removed from the follow-up queue and moved back to standard active status. The VA logs the recovery date and the follow-up touch that prompted resolution. This data helps the franchisee understand which touch is most effective over time.
Fee Disputes and Member Credits
Fee disputes arrive through multiple channels: phone calls to front desk, emails to the gym inbox, messages through the franchise's member portal, and occasionally social media. The VA monitors all of these channels and logs every dispute in a tracking spreadsheet before taking any action.
Disputes fall into three categories. The first is legitimate billing errors: a member was charged the wrong amount, an expired promo was not removed, a cancel request was not processed before the next billing cycle. These get corrected promptly and the VA issues a credit or refund through the billing platform per the franchise's refund policy.
The second category is member confusion: the member does not recognize the charge name on their statement (franchise brands often process payments under a corporate entity name, not the local gym name), or they forgot about the annual fee. The VA resolves these with an explanation and, where appropriate, an account summary showing the member's billing history.
The third category is disputed charges that require a policy decision: a member who canceled but claims they submitted the request before the billing date, or a member requesting a refund outside of the allowed window. These get escalated to the GM with the full account history and timeline. The VA does not make policy exceptions unilaterally.
All credits and refunds issued are logged in the reconciliation sheet with the reason code. This log is part of the monthly report to the franchisee and, where required, to corporate.
Franchise Royalty Calculations
Franchise royalties are typically a percentage of gross member revenue, remitted to the franchisor on a monthly or bi-weekly schedule. The calculation is governed by the franchise agreement and is one of the most compliance-sensitive tasks in the monthly billing cycle.
The VA does not calculate royalties in isolation. The calculation starts with the verified gross dues revenue figure from the billing run, applies the royalty percentage specified in the franchise agreement, and then cross-references against any deductions the agreement allows (refunded dues, write-offs above a certain age). The resulting figure goes to the franchisee for review before any payment is made.
For franchise systems that use an automated royalty reporting portal (common in brands like Planet Fitness and Anytime Fitness), the VA enters the revenue figures into the portal, generates the royalty invoice, and sends it to the franchisee for approval and payment. The VA does not authorize payments. The VA prepares the data and documentation.
If the royalty figure differs from the prior month by more than a defined threshold, the VA includes a variance explanation. A spike in gross revenue from a promotional campaign is expected and should be noted. An unexplained drop triggers a deeper look at the billing data before the report goes out.
Annual Fee Timing and Member Communication
Most franchise gym memberships include an annual fee billed once per year, separate from the monthly dues. The fee amount and billing date are specified in the membership agreement. Annual fees are a consistent source of disputes when members are not notified in advance.
The VA maintains an annual fee calendar: a rolling 60-day look-ahead showing every member whose annual fee is scheduled to process. Thirty days before each fee, the VA sends a notice to the affected members. The notice includes the fee amount, the scheduled billing date, and confirmation that their payment method on file is current. This is not a corporate requirement in most franchise systems, but it reduces disputes significantly.
On the billing date, the VA pulls the annual fee processing report and verifies successful charges. Declines on annual fees follow the same sequence as monthly due declines but with a tighter timeline, since annual fees are often in the $39 to $49 range and some franchise agreements require collection within a defined window.
Reporting to Corporate
Most franchise agreements require monthly financial reporting to the franchisor. The format, frequency, and submission method vary by brand. Some franchisors use proprietary reporting portals. Others require a standardized spreadsheet submitted by a specific date each month.
The VA owns the data assembly for this report: active member count by plan tier, gross dues collected, refunds and credits issued, royalty amounts, and any other metrics the franchise agreement specifies. The data comes from the billing run report, the dispute log, and the collections tracking sheet.
The franchisee reviews and approves the report before submission. The VA sends the draft to the franchisee by a fixed date each month (typically two to three business days before the corporate deadline) to allow time for review and questions.
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Frequently asked questions
When should the billing reconciliation process begin each month?
The first business day of the month. The billing run report should be pulled and reviewed within 24 hours of the billing cycle completing. Declined card follow-up should begin the same day the decline report is available.
How does the VA handle a member who disputes a charge through their bank (chargeback)?
A chargeback bypasses the gym and goes directly to the payment processor. The VA collects all documentation supporting the original charge (signed agreement, billing history, communications log) and provides it to the franchisee for response through the payment processor's dispute portal. Most franchise payment processing platforms have a built-in chargeback response workflow.
Does the VA have authority to issue refunds?
The VA can initiate refunds within defined limits set by the franchisee. Anything above a defined dollar threshold or outside the standard refund window requires GM approval. The VA prepares the documentation and escalates; the GM makes the decision.
How are royalties handled if gross revenue changes significantly month over month?
The royalty calculation is based on the verified gross revenue figure, regardless of the change. The VA includes a variance explanation in the report. If the change reflects a systemic issue (a billing error that inflated or deflated the figure), that must be disclosed to the franchisor per the franchise agreement.
What happens if the corporate reporting deadline is missed?
Most franchise agreements specify penalties for late reporting, ranging from fees to audit triggers. The VA builds the reporting calendar with internal deadlines that are two to three business days ahead of the corporate deadline to absorb any unexpected delays.