Accounting for Franchise Fees

J7J

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Join Date: Apr 2011

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#1

[Question] Accounting for Franchise Fees

20-Jun-11, 12:15 PM

Hi,

How would you account for a franchise fee that has been paid to start operating a franchise? My feeling is that you would capitalise and based on the contract, depreciate over the "useful life" of the asset.

Any other opinions?
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Dave A

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Join Date: May 2006

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20-Jun-11, 12:46 PM

Originally posted by J7J

My feeling is that you would capitalise and based on the contract, depreciate over the "useful life" of the asset.

+1

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[Question] Accounting for Franchise Fees