# ASC 720-952: Other Expenses — Franchisors Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/952/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:12:09.288Z to 2026-09-10T01:12:26.241Z Record version: sha256:448f161df526035cde95288a01139c2a350586605bee8f68663aefc741b8a5fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952: Other Expenses — Franchisors ### Machine-generated study aids ```json { "summary": "ASC 720-952 was the franchisor-specific guidance on other expenses (franchise costs such as direct and indirect costs of franchise sales and continuing franchise services). Every paragraph in the subtopic has been superseded — the recognition, presentation and other guidance by Maintenance Update 2017-09 and the disclosure paragraph by ASU 2014-09 (Revenue from Contracts with Customers). As a result, the subtopic contains no operative guidance today; franchisor cost accounting is addressed under ASC 606 and ASC 340-40.", "key_points": [ "All of the scope, recognition, presentation and other-presentation-matters paragraphs (720-952-05-1, 15-1, 25-1, 25-2, 45-1) were superseded by Maintenance Update 2017-09, leaving no substantive expense guidance for franchisors in this subtopic.", "The single disclosure paragraph, 720-952-50-1, was superseded by Accounting Standards Update No. 2014-09, the revenue recognition standard.", "Because ASU 2014-09 replaced the legacy franchisor revenue and related cost model, costs of obtaining and fulfilling franchise contracts are now evaluated under ASC 340-40 and revenue under ASC 606.", "A superseded paragraph number is retained in the Codification as a placeholder; students should not cite it as current GAAP but may need it when analyzing pre-adoption financial statements." ], "categories": [ "Industry-specific", "Revenue", "Transition and effective dates", "Disclosure" ], "audience_level": "intermediate", "student_note": "This subtopic is a shell: knowing that it is fully superseded is the point, and the common mistake is citing old franchisor cost-deferral rules that ASU 2014-09 eliminated. For current franchisor accounting, go to ASC 606 for revenue and ASC 340-40 for contract costs.", "related_topics": [ "606", "340-40", "952", "952-606", "720" ], "key_concepts": [ "superseded guidance", "franchisor costs", "franchise fee revenue", "costs to obtain a contract", "costs to fulfill a contract", "industry-specific expense guidance" ] } ``` Source downloaded (UTC): 2026-09-10T01:12:09.288Z to 2026-09-10T01:12:09.288Z Record version: sha256:61c7e6fb6a149eab5d48eeeea2067bb8134d57d8b9a8e790eaef3cbf85ece42a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/720/952/#00-status) SEC content: no ##### [720-952-00-1](https://asc.understandingaccounting.org/asc/720/952/#720-952-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:09.288Z to 2026-09-10T01:12:09.288Z Record version: sha256:aa610ca2e900cb5e52922e9fb564eab15e7b1000cfd8f5fffd0733ceb0f0cbf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Continuing Franchise FeesSupersededMaintenance Update 2017-09 (PDF)05/30/2017
ContractSupersededMaintenance Update 2017-09 (PDF)05/30/2017
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerSupersededMaintenance Update 2017-09 (PDF)05/30/2017
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
FranchisorSupersededMaintenance Update 2017-09 (PDF)05/30/2017
952-720-05-1SupersededMaintenance Update 2017-09 (PDF)05/30/2017
952-720-15-1SupersededMaintenance Update 2017-09 (PDF)05/30/2017
952-720-25-1SupersededMaintenance Update 2017-09 (PDF)05/30/2017
952-720-25-2SupersededMaintenance Update 2017-09 (PDF)05/30/2017
952-720-25-2AmendedAccounting Standards Update No. 2014-0905/28/2014
952-720-45-1SupersededMaintenance Update 2017-09 (PDF)05/30/2017
952-720-45-1AddedAccounting Standards Update No. 2014-0905/28/2014
952-720-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T01:12:11.869Z to 2026-09-10T01:12:11.869Z Record version: sha256:808d73a6c2d90d2bafb2d0cadebab7ab360cd1179e2f3ddc85cc9c86771b29a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/720/952/#05-overview-and-background) SEC content: no ##### [720-952-05-1](https://asc.understandingaccounting.org/asc/720/952/#720-952-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:11.869Z to 2026-09-10T01:12:11.869Z Record version: sha256:55e05cc77ec67e8acc586ccc366a559a7d7464b3e3b9b99dd8537d8f3eada989 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update 2017-09.](https://asc.understandingaccounting.org/updates/maintenance-updates-2017/) Source downloaded (UTC): 2026-09-10T01:12:13.677Z to 2026-09-10T01:12:13.677Z Record version: sha256:5d8754d18300ff5d701c112789a1c9052ab08627faeeec752fc6e8979948b802 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/952/#15-scope-and-scope-exceptions) SEC content: no ##### [720-952-15-1](https://asc.understandingaccounting.org/asc/720/952/#720-952-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:13.677Z to 2026-09-10T01:12:13.677Z Record version: sha256:bfe19dd8c79560d933538befeaa76877d7d2f8caea73ef933cdc0816d4c092a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update 2017-09.](https://asc.understandingaccounting.org/updates/maintenance-updates-2017/) Source downloaded (UTC): 2026-09-10T01:12:16.841Z to 2026-09-10T01:12:16.841Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/720/952/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-10T01:12:18.826Z to 2026-09-10T01:12:18.826Z Record version: sha256:b0fcf9a9b0cd87fd9f26f07e3ee29072a917029a340c38b946892a7802e7822c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/952/#25-recognition) SEC content: no ##### [720-952-25-1](https://asc.understandingaccounting.org/asc/720/952/#720-952-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:18.826Z to 2026-09-10T01:12:18.826Z Record version: sha256:a10a5336901dff1ac803ed2a4ce015149abe59b465db0718fa7108e0f336826a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update 2017-09.](https://asc.understandingaccounting.org/updates/maintenance-updates-2017/) ##### [720-952-25-2](https://asc.understandingaccounting.org/asc/720/952/#720-952-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:18.826Z to 2026-09-10T01:12:18.826Z Record version: sha256:7506fe6f79e5f3922d61ca31c1c757eba9f4acd66471391e127e97034668fd0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update 2017-09.](https://asc.understandingaccounting.org/updates/maintenance-updates-2017/) Source downloaded (UTC): 2026-09-10T01:12:22.723Z to 2026-09-10T01:12:22.723Z Record version: sha256:c2776482ff0e3af45713b128cbe6689df9a814bb51290a37a49c428e78d59826 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/720/952/#45-other-presentation-matters) SEC content: no ##### [720-952-45-1](https://asc.understandingaccounting.org/asc/720/952/#720-952-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:22.723Z to 2026-09-10T01:12:22.723Z Record version: sha256:be2960b94116971c0648b1c52051a54a705f45399edc3eebfcf54b335d8a806b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update 2017-09.](https://asc.understandingaccounting.org/updates/maintenance-updates-2017/) Source downloaded (UTC): 2026-09-10T01:12:26.241Z to 2026-09-10T01:12:26.241Z Record version: sha256:ead48ecdc170705a6ca6fcd5a256b2df7884534c90e02d69131a5a8045e426f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-952-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/720/952/#50-disclosure) SEC content: no ##### [720-952-50-1](https://asc.understandingaccounting.org/asc/720/952/#720-952-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:26.241Z to 2026-09-10T01:12:26.241Z Record version: sha256:35c220d27f5383c4db9b87174b5383cdaa73d436a4f6a19cb3b285928b54b40e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).