What is the amount of the initial non-refundable franchise fee for a Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
5. FEES
- 5.1. Initial Franchise Fee. You shall pay to us, on execution of this Agreement, a non refundable initial franchise fee (the "Initial Franchise Fee") in the amount of Four Thousand ($4,000) Dollars. The entire Initial Franchise Fee is fully earned and non refundable upon payment. You do not have a right to a refund once
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 must be paid upon the execution of the Franchise Agreement.
This initial fee grants the franchisee the right to operate a Gokhale Method franchise for a term of five years. Gokhale Method recognizes this fee as deferred revenue on its balance sheet, which means the revenue is recognized over the duration of the franchise term rather than immediately upon receipt. This accounting practice is common in franchising, as the franchisor provides ongoing support and brand usage rights throughout the franchise term.
As the initial franchise fee is non-refundable, prospective franchisees should conduct thorough due diligence before signing the agreement and paying the fee. This includes carefully reviewing the Franchise Disclosure Document, speaking with existing franchisees, and understanding all the obligations and responsibilities associated with operating a Gokhale Method franchise.