Private Franchisers Get Backing for Revenue Accounting Break

Privately held franchisers like Wings Etc. Inc., Duck Donuts, and Mr. Appliance could get a long-sought break from revenue accounting rules they say make them look cash poor.

A divided Financial Accounting Standards Board on Monday issued a proposal carving out an exception to the landmark revenue recognition standard for privately held franchisers. It would allow them to record the money they receive from the opening of new retail or restaurant outlets when they receive the cash.

The proposal would allow pre-opening services like site selection or staff training to be accounted for as a single bundled, separate performance obligation ...