Besides the royalty, what other amounts will Gokhale Method deduct from payments made by GMI-Pay Students?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
ys' notice.
- 5.4. Royalty Fee GMI Pay. For GMI-Pay Students we will collect our royalty, Billing Fee and any other amounts that you owe us from the amount tendered by the student to us. After such deductions, we will
remit the balance to you in accordance with our payment schedule. The schedule of fees and royalties in effect as of the signing of this Agreement is included in the annexed Exhibit A and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice.
- 5.5. Billing Fees. For GMI-Pay Students you will pay us a Billing Fee in accordance with our Billing Fee Schedule in effect as of the time of payment. The Billing Fee Schedule in effect as of the signing of this Agreement is included in the annexed Exhibit A and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice.
- 5.6.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, in addition to the royalty fee, Gokhale Method will deduct a Billing Fee and any other amounts that the franchisee owes to them from student payments made through the GMI-Pay system. After these deductions, Gokhale Method will remit the remaining balance to the franchisee according to their payment schedule.
This means that if a Gokhale Method franchisee uses the GMI-Pay system for student payments, the franchisor will automatically deduct royalties, billing fees, and any other outstanding debts the franchisee has with Gokhale Method before sending the remaining funds to the franchisee. The Billing Fee schedule and other fees are subject to change with a 30 days' notice.
Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to understand the current royalty and billing fee schedules. They should also inquire about any other potential deductions that could be applied to GMI-Pay student payments to fully understand their net earnings.