Are changes to the Billing Fee Schedule for a Gokhale Method franchise at Gokhale Method's reasonable discretion?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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. Product Sales. You may purchase from us or our approved vendors Gokhale Method branded products for resale. Such purchases will be at the then current wholesale prices published in our Price List, which will also include their retail prices.
- 5.7. Continuing Education and Related Fees. You agree to pay to us our regular fees for continuing training programs and such other fees as we may require in the Teachers Manual or Policy Statements.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method can change the Billing Fee Schedule at its reasonable discretion. Gokhale Method must provide thirty (30) days' notice before implementing any changes. This applies to the Billing Fee Schedule in effect at the time of signing the Franchise Agreement, which is included in Exhibit A.
This means that as a Gokhale Method franchisee, the fees you pay to Gokhale Method for the right to teach the Gokhale Method can be modified. While Gokhale Method is expected to act reasonably, the term 'reasonable discretion' can be subjective and may lead to disputes. It is important to understand what factors Gokhale Method considers when determining fee adjustments.
In addition to the general Billing Fee Schedule, the fees for continuing education programs, such as the Annual Meeting, teacher webinars, and membership in Gokhale® Active (Premium), are also subject to change at Gokhale Method's reasonable discretion with thirty (30) days' notice. The Teacher Referral Fee Schedule, which is initially $100, can also be changed under the same conditions. Therefore, franchisees should budget for potential increases in these fees over the term of their franchise agreement.
Prospective franchisees should carefully review Exhibit A, which contains the initial Billing Fee Schedule, and inquire about the historical frequency and magnitude of fee changes. Understanding the potential for fee adjustments is crucial for assessing the overall financial viability of a Gokhale Method franchise.