continuing franchise fee

Revenue1

1. 605-952Franchisors605 Revenue Recognition

   ASC 605-952 formerly contained the industry-specific revenue recognition guidance for franchisors (initial franchise fees, area franchise sales, continuing fees, and related disclosures). Every paragraph in the subtopic — Sections 05, 15, 25, 35, 40, 45, and 50 — has been superseded by ASU 2014-09 (Revenue from Contracts with Customers). Franchisors now apply ASC 606 (with ASC 340-40 for contract costs), including the franchisor-specific implementation guidance and, for private companies, the practical expedient added by ASU 2021-02.