The contractual arrangements between franchisors and franchisees present unique issues for the accountant. Franchise Accounting clarifies how to account for such matters as franchise fees, cooperative advertising funds, construction payments, and franchise repurchases. The accountant can use this course as the basis for a standardized approach to dealing with franchise accounting issues.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the general types of franchise agreements.
Specify the proper accounting for a cooperative advertising fund.
Describe the different types of accounting associated with repurchased franchises.
Identify the types of transactions that can result in asset capitalization by a franchisee.
Recognize the different presentation and disclosure requirements for franchisors and franchisees.
Major Topics
The Franchising Process
Fees Associated with a Franchise Agreement
Franchisor Accounting Issues
Franchisee Accounting Issues
Contract-Related Costs
Franchisor Revenue Recognition
Franchisee Revenue Recognition
