monitor muffler sells franchise arrangements throughout the united states and canada. under a franchise agreement, monitor receives $740,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a monitor muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a monitor mechanic, and (3) franchisees receive a monitor muffler building and necessary equipment. the stand-alone selling price of the initial training and certification is $17,800, and $562,000 for the building and equipment. monitor estimates the stand-alone selling price of the five-year right to operate as a monitor muffler establishment using the residual approach.