# Royalty dispute records retention timeline | SourceX

Canonical: https://refer.sourcex.si/guides/preserve-royalty-reconciliation-disputes-records
Last updated: 2026-10-19

Before a royalty platform is replaced, list what the new system will not load: sales reports as originally submitted, closed disputes, superseded agreement versions and the exclusion rules they carried, waived late charges, and the notes behind credits. Record the clock that ends each one, such as the old platform's deletion date, the refund window, disclosure document retention and tax retention, plus who owns it and who must approve keeping it. Then introduce the franchise finance head and the executive who can authorize a licensing discussion.

This retention timeline is part of the [royalty reconciliation disputes guide](/guides/workflow-royalty-reconciliation-disputes). The guide shows what a settled dispute looks like. This page asks what happens to that history when the platform holding it is replaced, and in what order the pieces disappear.

## What a royalty platform replacement usually loads, and what it leaves

A replacement project is scoped around what the franchisor needs on day one: current locations, current royalty rates, open receivables and this year's reporting calendar. History is often treated as optional.

| Usually loaded | Usually left on the old platform |
|---|---|
| Active locations and franchisee accounts | Locations that closed or transferred |
| Current royalty and ad fund rates | Rates and exclusion rules from older agreement versions |
| Open receivables and current-year reports | Closed periods, reports as originally submitted |
| Open disputes | Closed disputes, their threads and approval notes |
| Current late charge settings | Late charges that were waived, and why |

The right-hand column is the dispute history. It is the part that lets someone see how the franchisor read its own agreements when a number was contested.

## The clocks on a royalty dispute file

Each record class has its own clock. Some come from outside rules; most come from the franchisor's own contracts and plans.

| Record class | What sets its clock | Documented anchor | When it fades | Who approves keeping it |
|---|---|---|---|---|
| Sales reports as originally submitted | Royalty platform contract and import scope | None published; set by the project plan | Go-live, if only corrected figures load | Franchise finance head |
| POS refund detail | POS retention and feed settings | Square: refunds within one year of the original transaction | When the feed or POS changes | Finance with the POS administrator |
| Disclosure document versions | 16 CFR 436.6 | 3 years after the fiscal year a version was last used | After that period, unless kept | General counsel |
| Signed franchise agreements | Franchisor's contract retention | Company retention schedule | Rarely, but files may be scattered | General counsel or franchise administration |
| Closed disputes and approval notes | Old platform and finance mailbox | Company retention schedule | Platform deletion or mailbox purge | Franchise finance head, CFO |
| Royalty invoices and credit memos | Accounting retention | IRS: generally 3 years after filing | Last, under the finance schedule | Controller or CFO |

Two outside clocks deserve a note. Square says payments can be refunded within one year of the original transaction date, so a royalty reported monthly can be disputed long after the period closed. And franchisors keep a sample of each materially different disclosure document version for three years after the fiscal year it was last used. Item 6 of each version lists recurring fees such as royalties and the formula used to compute them, which is why old versions help date the rule a dispute turned on. A legal minimum is not a reason to keep data, and it is not permission to license it.

## What disappears first

In most replacements the order looks like this:

1. **Original submissions, at go-live.** If the old platform overwrote a franchisee's report when it was corrected, or the import loads corrected totals only, the claim the dispute started from is gone the day the new system starts.
2. **Approval notes in mailboxes.** Credits approved by email depend on mailbox retention, which runs on its own schedule. Whether old mail is recoverable depends on the difference between an [email archive and a backup](/systems/email-archive-vs-backup).
3. **Older exclusion rules.** The new platform is configured with today's rule. Rules for locations signed years ago may survive only in the old configuration screens.
4. **Closed disputes, at the old platform's deletion date.** Threads, attachments and status history leave with the tenant unless exported with their location and period keys.
5. **Credits and invoices, last.** Accounting history usually survives longest, so the outcome outlives the reasoning that produced it.

That last pattern is the one to watch. A history where credit memos survive but submissions, rules and notes do not shows what disputes cost, not how they were decided. The [system map](/guides/royalty-reconciliation-disputes-records-across-systems) shows which linking keys need to survive alongside each record.

## An Illustrative replacement timeline

Illustrative only; the franchisor and dates are fictional. A 230-person home services franchisor with about 400 locations is moving to a new royalty platform at the start of its fiscal year. The franchise finance head fills in the timeline from the project plan and the vendor contract.

| Point on the timeline | Event | Record class affected | Status after the event |
|---|---|---|---|
| Month minus 3 | Inventory with the finance head | All six record classes | Listed with years, owners and dates |
| Month 0 | New platform live; corrected totals loaded | Original submissions | Only on the old platform |
| Month 6 | Old platform read-only per contract | Closed disputes, older rules | Readable, no longer updated |
| Month 12 | Old platform tenant deleted per contract | Closed disputes, notes, older rules | Gone unless exported with keys |
| Year 3 | Oldest superseded disclosure version passes its retention period | Disclosure document version | Gone unless counsel keeps it |
| Year 5 | Finance schedule still running | Invoices and credit memos | Kept under the finance schedule |

Only the disclosure retention figure is an outside rule here. Everything else comes from the franchisor's own documents, which is why the people holding them have to fill it in.

## Who must approve keeping each record

Keeping dispute history past its normal end is a decision with an owner. The franchise finance head can say what exists. Keeping franchisee-supplied sales reports may need general counsel, because the franchise agreements govern what the franchisor may do with that data; keeping POS detail may need the POS administrator and whoever owns privacy, because card and customer fields carry their own rules. Budget for exports or archive storage sits with the CFO. Do not recommend retaining anything the franchisor has no authority or reason to keep.

## What the partner writes down, and what stays unknown

Discovery stays at metadata level: record classes, years covered, system and owner of each, rough counts of disputes a year and every documented date. Record a date only when a contract or plan states it. The [referral brief template](/resources/royalty-reconciliation-disputes-referral-brief-template) has a field for the access event.

The introduced company needs 50+ full-time employees at peak (contractors excluded; franchisee staff work for separate companies), a documented operating history, rights to license the records and an authorized contact. Companies in the U.S., Canada and the EU qualify, as do companies in the UK, Australia, New Zealand, India, Singapore, South Africa, Latin America, the UAE and Saudi Arabia when at least 90% of the data is in English.

Unknown until SourceX reviews it: buyer interest in royalty dispute histories, what rights review concludes about franchisee data, the preparation needed and any offer. SourceX licenses approved business data directly from companies for AI training and evaluation, and manages the agreement, rights review, data preparation, delivery and payout. Partners sign the Channel Partner Agreement before submitting, and the first valid introduction within the 90-day window is credited when the company submits a verified application. For how royalty formulas are structured, see [upfront license fee vs royalty](/compare/upfront-license-fee-vs-royalty); for licensing income in a nonprofit setting, see [affinity program royalty income](/guides/association-affinity-program-royalty-income-ubit); and for the sector, [franchisor data monetization](/industries/franchisor-data-monetization).

## Next step

> **Refer a company. Earn up to $100,000.** Default reward: 25% of Actual Supplier Payout, capped at $100,000 cumulatively per referred company. Eligibility and payment conditions apply, and a signed Schedule A or addendum can differ. A lead, meeting or signature alone does not trigger payment.

If the timeline shows dispute history that leaves with the old platform on a documented date, and an executive who can decide what happens to it, [register as a partner](/register), check the franchisor on [who qualifies](/who-qualifies) and read the [program terms](/terms) before the introduction.

## Sources

- https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436/subpart-C/section-436.6
- https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436/subpart-C/section-436.5
- https://squareup.com/help/us/en/article/6116-process-refunds
- https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records
- https://refer.sourcex.si/terms