Are changes to the Royalty 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, the Billing Fee Schedule, which includes fees paid by the franchisee/teacher to Gokhale Method, is subject to change. Gokhale Method has the right to change the Billing Fee Schedule from time to time in its reasonable discretion. However, Gokhale Method must provide the franchisee with thirty (30) days' notice before implementing any changes to the schedule.
This means that while Gokhale Method can adjust the fees franchisees pay, they cannot do so arbitrarily or without warning. The "reasonable discretion" clause suggests that changes should be justifiable and not excessive. The 30-day notice period allows franchisees time to adjust their business plans or raise any concerns they may have about the proposed changes.
In addition to the Billing Fee Schedule, the Teacher Referral Fee Schedule is also subject to change at Gokhale Method's reasonable discretion with thirty (30) days' notice. The Teacher Referral Fee Schedule in effect as of the signing of the Franchise Agreement is $100. Prospective franchisees should carefully consider these terms and factor in the potential for fee adjustments when evaluating the financial viability of a Gokhale Method franchise.