Hire purchase

It should be clarified whether during the 4 years, all the risks and rewards of the assets remain with the franchisees or with the franchiser. Also, at the end of 4 years, whether the franchiser gets custody of the assets reimbursed by him or only legal ownership is transferred to him? Responsibility of risks and rewards after transfer of ownership on completion of 4 years is also relevant in this regard. Please also clairfy whether the franchiser gets any benefits from the assets sponsored by him whatsoever or just a legal ownership is passed on to him after 4 years. This will be the factors determining correctness of asset recognised by franchiser. However, I am doubtful about capitalising only 4th year installment as cost of the asset (if at all he is entitled to capitalise it in his books). Either he should treat the entire amount as business promotion expenditutre or should capitalise the entire amount, depending on the factors mentioned above. Would like to hear others' views on this.