Franchise Fees and Revenue Recognition

Franchise Fees and Revenue Recognition

From the e-Activity(Use the Internet to research a company that is in the franchise business. Be prepared to discuss), briefly describe the company’s franchise structure which you researched. Suggest one (1) way in which the company could improve its franchise structure to make it more attractive to potential customers.

• Outline a fraud prevention plan for a retail organization to reduce the likelihood of error and fraud. In your plan, identify two (2) types of potential errors that could occur and two (2) types of fraud that could occur. Explain how your plan can prevent errors and fraud from occurring

Solution Preview

McDonald’s is one company that has franchised over 80% of its restaurants (Lee & Carter, 2005). Their franchise is a license for 20 years. The deposit that is required to be a franchisee of McDonald’s is 40% to start a new one and 25% in case it existed before and the……………………………………………………