Standards
Summary of Statement No. 45
Accounting for Franchise Fee Revenue (Issued 3/81)
Summary
This Statement extracts the specialized accounting principles and
practices from the AICPA Industry Accounting Guide, Accounting
for Franchise Fee Revenue, and establishes accounting and
reporting standards for franchisors. It requires that franchise fee
revenue from individual and area franchise sales be recognized only
when all material services or conditions relating to the sale have
been substantially performed or satisfied by the franchisor. This
Statement also establishes accounting standards for continuing
franchise fees, continuing product sales, agency sales, repossessed
franchises, franchising costs, commingled revenue, and
relationships between a franchisor and a franchisee.
Additional Details
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