WebAFAR- 06. Week No. 6: FRANCHISE & CONSIGNMENT. Occasionally, the continuing franchise fee (royalty payments) is not large enough to cover the franchisor's cost of the continuing services provided. However, the initial franchise f e e i s unusually large (so, in effect it involves a prepayment by the franchisee for the continuing services). WebProblem 8: ABC Charges 495,000 for a franchise with 99,000 paid when the agreement is signed and the balance in. four annual payments. The PV of annual payments discounted at 9% is 320,732.50 the franchisee has the right to. purchase 100,000 of equipment and supplies for 88,000.
AFAR 2815 Franchise Accounting and Consignment - Studocu
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WebAFAR 2814 Consignment Sales & Franchise Accounting; AFAR 2815 Franchise Accounting and Consignment; AFAR 2816 LONG TERM Construction Contracts; … Web1 hour ago · Shaking off a 2-5-0 skid that scuttled their chances at the division title, the Kings won their final two games to finish with 104 points, the second most in franchise history behind the 1974-75 ... WebThe franchisee pays the franchisor 2 types of franchise fees: 1. Initial franchise fee – paid in consideration of the right to use the franchisor’s name, products, and processes, as well as for initial services to be rendered by the franchisor; and 2. Continuing franchise fee – paid in consideration of continuing services provided by the ... fs 108 0075h 45 ap07a blind