I have just paid an amount of money to a Franchise Company in the UK (Im in the UK too).  It is the initial fee and the agreement runs for 5 years and then 3 months on a rolling basis.  This is how Im approaching recording the transaction and need to know this will appear correctly in my balance sheet.

I have created a new account under CoA called 'Non-current asset' with Account Type of 'Other Asset'.

I have debited this new account with the entire cost of the initial franchise fee.

I have credited the bank account that the money came from.
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So I have 2 questions.

a) is this the correct setup and will that reflect correctly in my balance sheet

b) I believe the amount can be amortized and I would then debit this as a franchise expense and credit the new account created above - is this correct?