Franchisors may restrict the goods and services you sell. For example, if you own a restaurant franchise, you may not be able to make any changes to your menu. If you own an automobile transmission repair franchise, you may not be able to perform other types of automotive work, like brake or electrical system repairs.
Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.
About Amortization. Amortization is the process of deducting portions of the cost of a business-related purchase from several years of revenue. Most businesses amortize assets using the straight-line method. To employ this method, the business's accountant divides the total cost of the purchase by the number of years in its estimated useful life.