# ASC 606-952-00: Revenue from Contracts with Customers — Franchisors — 00 Status

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/606/952/#00-status)

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## ASC 606-952-00: 00 Status

[Read section](https://asc.understandingaccounting.org/asc/606/952/#00-status)

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##### [606-952-00-1](https://asc.understandingaccounting.org/asc/606/952/#606-952-00-1)

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The following table identifies the changes made to this Subtopic.

<table class="asc-table" id="SL125986956-241986"><tbody><tr><td class="entry"><strong class="ph b">Paragraph</strong></td><td class="entry"><strong class="ph b">Action</strong></td><td class="entry"><strong class="ph b">Accounting Standards Update</strong></td><td class="entry"><strong class="ph b">Date</strong></td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/c/#contract" class="term" title="An agreement between two or more parties that creates enforceable rights and obligations."><span>Contract</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/c/#customer" class="term" title="A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."><span>Customer</span></a> (1st def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#franchise-agreement" class="term" title="A written business agreement that meets the following principal criteria: The relation between the franchisor and franchisee is contractual, and an agreement, confirming the rights and responsibilities of each party, is in force for a specified period. The continuing relation has as its purpose the distribution of a product or service, or an entire business concept, within a particular market area. Both the franchisor and the franchisee contribute resources for establishing and maintaining the franchise. The franchisor's contribution may be a trademark, a company reputation, products, procedures, manpower, equipment, or a process. The franchisee usually contributes operating capital as well as the managerial and operational resources required for opening and continuing the franchised outlet. The franchise agreement outlines and describes the specific marketing practices to be followed, specifies the contribution of each party to the operation of the business, and sets forth certain operating procedures that both parties agree to comply with. The establishment of the franchised outlet creates a business entity that will, in most cases, require and support the full-time business activity of the franchisee. (There are numerous other contractual distribution arrangements in which a local businessperson becomes the authorized distributor or representative for the sale of a particular good or service, along with many others, but such a sale usually represents only a portion of the person's total business.) Both the franchisee and the franchisor have a common public identity. This identity is achieved most often through the use of common trade names or trademarks and is frequently reinforced through advertising programs designed to promote the recognition and acceptance of the common identity within the franchisee's market area. The payment of an initial franchise fee or a continuing royalty fee is not a necessary criterion for an agreement to be considered a franchise agreement."><span>Franchise Agreement</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#franchisor" class="term" title="The party who grants business rights (the franchise) to the party (the franchisee) who will operate the franchised business."><span>Franchisor</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity" class="term" title="An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans."><span>Not-for-Profit Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#performance-obligation" class="term" title="A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer."><span>Performance Obligation</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/s/#security" class="term" title="A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations."><span>Security</span></a> (2nd def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-05-1" class="xref">952-606-05-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-15-1" class="xref">952-606-15-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-15-2" class="xref">952-606-15-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-25-1" class="xref">952-606-25-1 through 25-4</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-50-1" class="xref">952-606-50-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-50-2" class="xref">952-606-50-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-55-1" class="xref">952-606-55-1 through 55-5</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/606/952/#606-952-65-1" class="xref">952-606-65-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-02/" class="xref">Accounting Standards Update No. 2021-02</a></td><td class="entry">01/28/2021</td></tr></tbody></table>