What was the amount of royalties revenue for Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Accounts receivable is primarily comprised of net royalty receivables from franchise, teachers, or class fees collected by GME.
The Company utilizes the allowance method of accounting for doubtful accounts. The allowance is based on management's review of all past due accounts. As of December 31, 2022, management believes that all receivables are collectable after year end.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
I am unable to provide the exact royalties revenue for Gokhale Method in 2022, as this specific figure is not disclosed in the provided excerpts from the 2024 Franchise Disclosure Document. However, the FDD does mention that accounts receivable primarily consist of net royalty receivables from franchises, teachers, or class fees collected by GME (Gokhale Method Enterprises, Inc.).
While the document confirms that royalties are a revenue source for Gokhale Method, the precise amount of royalty revenue recognized in 2022 is not specified. Instead, the FDD focuses on accounting policies related to receivables and the management's belief that all receivables were collectable as of December 31, 2022.
For a prospective franchisee, it is important to understand the royalty structure and how it contributes to the franchisor's revenue. To obtain the specific royalty revenue figure for 2022, a potential franchisee should directly ask Gokhale Method for this information during their due diligence process. This inquiry can be part of a broader discussion about the company's financial performance and revenue streams.