Following the example set earlier this week by Maryland, Virginia has announced that it is extending the renewal periods for franchisors registered in the state by a period of twenty-one days.
Amid the COVID-19 crisis, Maryland has extended the registration period for franchisors.
This morning, Maryland’s franchise chief, Dale Cantone, warned franchise companies about failure to follow ASC 606 when filing for registration.
Despite what some in the industry say, it’s neither illegal nor uncommon for franchisors to negotiate franchise agreements with prospective franchise buyers.
Under ASC 606, franchisors will have to begin deferring recognition of some or all of the up-front franchise fee revenues they receive over the life of a franchise agreement.
Bringing franchise registrations into the 21st century, Washington may require franchisors to e-file registrations.