Rapunzel acquired a franchise to operate a beauty salon from Beautiful Hair, Inc., for $125,000. She incurred an additional $2,000 in legal costs to negotiate the terms with the franchisor. In ten years, the franchise contract will be renegotiated. The current contract also states that there will be a $1,000 annual fee plus a one percent charge based on the store's annual revenue. What is the franchise cost that should be capitalized?