Big Burger sold a franchise to Joe Little for $50,000 and collected an initial franchise fee of $10,000 which is nonrefundable. Annual installments of $10,000 will be collected over the next four years. Big Burger has provided all of the initial required services including extensive training services and any remaining services to be performed are minimal. Therefore, Big Burger should record the receipt of the initial $10,000 as $2,000 of revenue and $8,000 of unearned revenue.

True or False