Implementation of the new revenue recognition standard may seem far off, but it’s just around the corner. And, the amount of work involved for franchisors to switch to the new framework and the five-step revenue recognition process can take significant time.
The framework in the new standard applies to all contracts with customers. With so much variation in franchisor contracts, each contract will need to be analyzed individually or by portfolio of similar contracts.
Our revenue recognition resource guide for franchisors includes key topics on revenue recognition for franchisors, including considerations such as:
- Determination of distinct contract obligations
- Broker fees and franchise fees
- Incentives to franchisees
- Area development agreements
- Advertising funds
- Extended payment terms and noncash consideration
- Balance sheet and tax impact
- Principal vs. agent transactions
Download our Revenue recognition resource guide for franchisors to help your franchise implement the new standard.