Helpful Guidance To Franchisors On Implementing New Revenue Recognition Standards

Helpful guidance to franchisors

FisherZucker partner Joe Dunn was part of the IFA taskforce charged with addressing how the new standard alters the way in which franchisors can recognize initial franchise fees in their audited financial statement.  After much consultation with the SEC and the Financial Accounting Standards Board (FASB), which governs auditing standards in the United States, we’re pleased to say that we’ve obtained some helpful clarity and guidance. Under the present standard,

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Franchisee in the Jailhouse

Franchisee in the Jailhouse

One huge dilemma a franchisor can face is when a franchisee is accused of a crime that has nothing to do with the operation of the franchised business. First, you have to look to the terms of your franchise agreement. Most franchise agreements will allow a franchisor to terminate the franchise agreement if a franchisee is convicted of a crime or engages conduct that reflects poorly on the franchisor’s brand

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The Importance of Designated Purchases and Vendors to Create Franchise Uniformity

The Importance of Designated Purchases and Vendors to Create Franchise Uniformity

Uniformity of product and service offerings is essential to maintaining a uniform franchise system. By using unauthorized products and/or suppliers in providing the products and services at the franchised business, franchisees will start to break away from the uniform system standards set by the franchisor, which will then lead to the problems discussed below. First, many franchisors spend years building up the goodwill associated with their system and trademarks only

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