Answer:
2. when performance obligations are satisfied.
Step-by-step explanation:
Franchise fee is paid to the franchisor to become part of the franchise.
Obligations by the franchisor are satisfied when:
1. When the franchisor does not have any financial repayments to make.
2. Initial services are all performed, for example some agreements require franchisor to train new franchise staff.
Usually franchise fee is paid upfront, and then regular payments areade by the franchise to the franchisor to remain a member.