How does Gokhale Method classify continuing education fees in its balance sheet?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
lated 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. These fees include, but are not limited to fees for the Annual Meeting, for teacher webinars, and for membership in Gokhale® Active (Premium). The Billing Fee Schedule for these fees 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.
- 5.8. Advertising Expenditures and Contributions. You shall make expenditures and contributions for advertising and brand promotion as specified in Section 12 hereof.
- 5.9. Teacher Referral Fees. Should you refer to us a new teacher for the Gokhale Method, and that teacher is accepted by us as a teacher and becomes qualified by us to teach the System, we will pay you a Teacher Referral Fee in accordance with our Teacher Referral Fee Schedule in effect as of the time of payment. The Teacher Referral Fee Schedule in effect as of the signing of this Agreement is $100 and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice. Accepting and qualifying such Teacher will be at Franchisor's sole discretion.
- 5.10. Payments. All payments due Franchisee for activities within a calendar month will be made by us within 10 days of the close of such month. We may deduct any charges, fees or other payments you owe us, including those for continuing education or for products or equipment purchased from us, or any other fees or charges, and remit the balance to you. All payments due Franchisor for activities within a calendar month will be made to us within 10 days of the close of such month.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Gokhale Method Franchise Disclosure Document, there is no explicit mention of how continuing education fees are classified within the company's balance sheet. The provided excerpts focus on the franchisee's obligation to pay these fees and the franchisor's right to collect them. Specifically, the FDD details the fees associated with continuing training programs, such as the Annual Meeting, teacher webinars, and membership in Gokhale® Active (Premium). It also mentions that Gokhale Method may deduct these fees from payments owed to the franchisee.
While the FDD outlines the franchisee's costs for continuing education, it does not specify how Gokhale Method accounts for these fees on its own financial statements. The document includes an independent auditor's report and discusses the responsibilities of management in preparing financial statements, but it does not delve into the specific accounting treatment of continuing education fees.
Therefore, a prospective Gokhale Method franchisee should directly inquire with the franchisor about how these fees are recorded and classified in their balance sheet. Understanding this aspect of the franchisor's accounting practices can provide a more complete picture of the financial relationship between the franchisee and franchisor.