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Pizza Extravaganza grants franchisees the right to operate a pizzeria using the company s name, menu items, d cor , and general operational program. A
Pizza Extravaganza grants franchisees the right to operate a pizzeria using the companys name, menu items,
dcor and general operational program. A franchisee pays a $ initial fee for management training and
extensive planning documents. After the franchise opens, the franchisee can choose to sign an annual agreement
and pay a fee of $ per year for additional training, accounting services, and realtime consulting services.
A new franchise agreement is signed on June and the new pizzeria opened up for business on December A
franchisee signed up for one year of consulting services on December
When is revenue recognized for the a $ initial fee, and b $ consulting fee?
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