a national real estate brokerage firm has become highly successful by
selling franchises to local real estate brokers. it charges $10000 for
the initial franchise fee and a service fee of 6 percent of the
broker's revenue thereafter. for this it permits use of its well-known
name, and provides a one-week intial training course, a nationalwide
referral system, and various marketing and managment aids. currently,
the franchise fee accounts for 25 percent of the national firm's
receipts, but it expects that the united states market will be
saturated within the nex three years, and thereafter the firm will
have to depend on the service fee and new sources of revenue that it
may develop. should it recognize the 10000$ as revenue in the year in
which the franchise agreement is signed? why? if it does, what will
happen to its profits after the market has become saturated? why?