LifestyleONE â An ergonomic bed design worth dreaming about. The bed, LifestyleONE, features many new functions in a stylish design that gives the bed a whole new place in the bedroom. The bed was designed to include adjustable comfort zones that are integrated with its existing LINAKÂ® motor solution â something which is completely unique and that sets new standards for ergonomics in the bed market.
The franchise fee covers your initial training, supplies and gives you access to the unique goods or services associated with the franchise. The franchise fee is recorded at its full present value amount. On the balance sheet, the franchise fee is listed under the assets section as an intangible asset. To record the initial franchise fee purchase cost, you debit Franchise Fee for $50,000 and credit Cash for $50,000. Yearly Franchise Fee Amortization You can amortize your franchise fee on a yearly basis.
The initial fee typically takes the form of a minimum dollar amount based on a hotelâs room count. For example, the initial fee may be a minimum of $45,000 plus $300 per room for each room over 150. Thus, a hotel with 125 rooms would pay $45,000 and a hotel with 200 rooms would pay $60,000. The initial fee is paid upon submission of the franchise application.