What was the change in accounts receivable for Gokhale Method in 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Accounts receivable is primarily comprised of net royalties' 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, 2021 and 2020, management believes that all receivables are collectable after year end.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the excerpts provided do not contain the specific figures for Gokhale Method's accounts receivable for either 2022 or 2023. The excerpts do discuss accounts receivable in general terms, noting that they primarily consist of net royalty receivables from franchisees, teachers, or class fees collected by Gokhale Method Enterprise, Inc. (GME). The documents also mention the use of an allowance method for doubtful accounts, based on management's review of past due accounts. However, the actual values for accounts receivable are not disclosed in the provided excerpts.
Without the specific accounts receivable figures for 2022 and 2023, it is impossible to calculate the change in accounts receivable for Gokhale Method during that period. The financial statements included in Item 22 are audited, and while they provide an overview of the company's financial practices, the detailed figures needed to answer this question are absent.
A prospective franchisee would need to consult the full audited financial statements within the FDD or request this information directly from Gokhale Method to fully understand the company's accounts receivable trends. Understanding these trends can provide insights into the financial health of the franchise system and the timeliness of payments from franchisees and other sources.