Franchising was invented by a number of ambitious people. Though technically it has no founder, it has a long history of innovation and well-judged investments.
Franchise fees are amortized. There are two ways of amortizing the lump sum fee from the agreement which is an important part of a franchise business plan. The fee can be amortized annually, in which case you can split the franchise fee by its useful life (here, you could think of useful life as the number of years on the franchise agreement). For example, if you pay $20,000 for 10 years of useful life, then amortize $2,000 every year. Alternatively, you could break this down into about $170 a month. Either way, debit the amortization account by the required amount and then credit the Accumulated Amortization account by the same amount.