Franchises are intangible assets.

According to relevant laws, intangible assets include trademark rights, patent rights, non-patented technology, land use rights, copyrights and franchise rights. A franchise right is a privilege granted by the authority to an individual or legal entity. It is a special type of identifiable intangible asset. As one of the intangible assets of an enterprise, franchise rights play a decisive role in the production and operation of the enterprise; through the definition of intangible assets, it can be seen that franchise rights are intangible assets.

The characteristics of a franchise are as follows:

1. Individuals (legal persons) have ownership of trademarks, service marks, unique concepts, patents, business know-how, etc.;

2. The rights owner authorizes others to use the above rights;

3. Include some adjustment and control clauses in the authorization contract to guide the business activities of the licensee;

4. Licensee is required to pay royalties and other fees.

Franchises include:

1. Production franchise. The franchisee invests in building a factory or through OEM, uses the franchisor's trademarks or logos, patents, technology, design and production standards to process or manufacture the franchised products, and sells them through dealers or retailers. The franchisee does not cooperate with Direct transactions with end users (consumers);

2. Product trademark licensing. The franchisee uses the franchisor's trademark and retail method to wholesale and retail the franchisor's products;

3. Business model franchise. The franchisee uses the franchisor's trademark, trade name, corporate logo and advertising, and operates in full accordance with the single store business model designed by the franchisor.

To sum up, for the assets of a company, the assets of the company are divided into many types. For example, tangible assets and intangible assets. Tangible assets consist of assets with specific images, such as houses, cars, etc. , these are tangible assets, and there are many types of intangible assets; franchising means that investors license their trade names, trademarks, service marks, business secrets, etc. to operators under certain conditions, allowing him to operate under certain conditions. If the franchisee is engaged in the same business as the franchisor within the region, the franchise right can be regarded as a type of intangible assets and accounted for in the intangible assets.

Legal basis:

Article 27 of the "Company Law of the People's Republic of China"

Shareholders can contribute capital in currency or in kind. , intellectual property rights, land use rights and other non-monetary properties that can be valued in currency and can be transferred in accordance with the law are used as capital contributions; however, properties that are not allowed to be used as capital contributions according to laws and administrative regulations are excluded.

Non-monetary property used as capital contribution shall be evaluated and verified, and the property shall not be overvalued or undervalued. If laws and administrative regulations have provisions on valuation and valuation, those provisions shall prevail.