What was the amount of deferred revenue reported by Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
invoice for the net royalty.
Our franchise agreements generally provide for an initial non-refundable franchise fee $4,000 per franchise for five-years term. We classify this as deferred revenue in our balance sheet and recognized over the franchise term.
The agreement also requires franchisees to pay continuing education fees including annual meeting fees, online university membership fees and teacher teleseminar fees. These fees are included in continuing education caption of the Statement of Operations.
Deferred Revenue
Deferred revenue is primarily from initial franchise fees and renewal fees received from franchises for new franchise opening or new franchise terms, which are recog
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, deferred revenue primarily comes from initial franchise fees and renewal fees. These are initially recorded as deferred revenue on the balance sheet and are recognized as revenue over the franchise term.
The FDD does not explicitly state the total amount of deferred revenue Gokhale Method reported in 2022. However, it does mention that the initial non-refundable franchise fee is $4,000 per franchise for a five-year term, which is classified as deferred revenue and recognized over that term.
To determine the exact deferred revenue amount for 2022, a prospective franchisee should review the complete audited financial statements included in the FDD. If the information is not present, they should directly ask Gokhale Method's franchisor for the specific deferred revenue figure as of December 31, 2022. This will provide a clearer picture of the company's financial obligations related to franchise fees.