What is the amount of the initial franchise fee for a Gokhale Method franchise?
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 recog
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the initial franchise fee is $4,000. This fee is non-refundable and is due upon the execution of the Franchise Agreement. Gokhale Method considers the initial franchise fee as fully earned and non-refundable once paid, meaning the franchisee is not entitled to a refund after payment.
Gokhale Method recognizes this initial franchise fee as deferred revenue on its balance sheet, which is then recognized over the five-year franchise term. This accounting practice means that Gokhale Method doesn't immediately recognize the entire fee as income but spreads it out over the duration of the franchise agreement.
In addition to the initial franchise fee, franchisees are required to pay continuing education fees. These include annual meeting fees, online university membership fees, and teacher teleseminar fees. These recurring fees are separate from the initial franchise fee and contribute to Gokhale Method's ongoing revenue.