# ASC 952-10-25: Franchisors — Overall — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/952/10/#25-recognition)

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): 2026-09-10T02:20:43.815Z to 2026-09-10T02:20:43.815Z

Record version: sha256:f2d51a2cdb8df4941815031a5701258fbe0e1904e42d7db37b46f4cf7e6d6927

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 952-10-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/952/10/#25-recognition)

SEC content: no

#### Costs

##### [952-10-25-1](https://asc.understandingaccounting.org/asc/952/10/#952-10-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:20:43.815Z to 2026-09-10T02:20:43.815Z

Record version: sha256:19ed8d89f60a3366acb844b922b7b71fcac9651b8c05debdc4559aef8e7ae9ea

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Costs relating to [continuing franchise fees](https://asc.understandingaccounting.org/glossary/c/#continuing-franchise-fees "Consideration for the continuing rights granted by the franchise agreement and for general or specific services during its life.") shall be expensed as incurred.

##### [952-10-25-2](https://asc.understandingaccounting.org/asc/952/10/#952-10-25-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:20:43.815Z to 2026-09-10T02:20:43.815Z

Record version: sha256:2c69763829aa269cdab7fa6a77a2661bf18748c5433711c26b20aff6bac39fed

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Indirect costs of a regular and recurring nature that are incurred irrespective of the level of sales, such as general, selling, and administrative costs, shall be expensed as incurred. For guidance on accounting for the incremental costs of obtaining a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "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."), see Subtopic 340-40.