What was the balance of accounts receivable for the Gokhale Method as of December 31, 2023?
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)
The 2024 Franchise Disclosure Document for Gokhale Method does not explicitly state the balance of accounts receivable as of December 31, 2023. However, it does provide some context regarding accounts receivable.
Specifically, the FDD notes that Gokhale Method's accounts receivable primarily consist of net royalty receivables from franchisees, teachers, or class fees collected by Gokhale Method Enterprise, Inc. (GME). The company uses the allowance method for doubtful accounts, basing the allowance on management's review of past due accounts.
For the year ending December 31, 2022, Gokhale Method's management believed that all receivables were collectible after year end. While this provides some insight into the company's accounting practices, the absence of a specific figure for accounts receivable as of December 31, 2023, means that prospective franchisees should directly ask the franchisor for this information to gain a clearer understanding of the company's financial health and the status of its receivables.