What is the amount of the non-refundable Initial 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. Gokhale Method considers the entire initial franchise fee as fully earned and non-refundable once it is paid, meaning a franchisee will not receive a refund under any circumstances after payment.
This initial fee grants the franchisee the right to operate a Gokhale Method franchise for a specified term, as mentioned in the FDD. The franchisor classifies this fee as deferred revenue on their balance sheet and recognizes it over the franchise term. This accounting practice means that Gokhale Method recognizes the revenue gradually over the life of the franchise agreement rather than all at once upon receipt.
Prospective franchisees should carefully consider the non-refundable nature of this fee. It is advisable to conduct thorough due diligence and fully understand the terms and conditions of the franchise agreement before paying the initial franchise fee to Gokhale Method. Understanding the services and support provided in exchange for this fee is crucial in assessing the value of the franchise opportunity.