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Eastern Cycles Ltd

Accounting

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Eastern Cycles Ltd. is a franchise that sells bicycles and cycling equipment to the public. It currently operates several corporate-owned retail stores in Ottawa that are not considered a separate major line of business. It also has several franchised stores in Alberta. The franchisees buy all of their products from Eastern Cycles and pay 5% of their monthly sales revenues to Eastern Cycles in return for corporate sponsored advertising, training, and support. Eastern Cycles continues to monitor each franchise to ensure quality customer service. In 2015, Eastern Cycles sold its corporate owned stores in Ottawa to a franchisee.

Would the sale of the franchise meet the classification of a discontinued operation under IFRS or ASPE?