Does the Gokhale Method company pay consulting fees to its parent entity?

NOTE 1 – NATURE OF OPERATIONS

Gokhale Method Institute, Inc. ("GMI") was incorporated in 2011 as a California Sub-Chapter S Corporation by Gokhale Method Enterprise, Inc. ("GME"). The subsidiary was formed to franchise the Gokhale Method of dealing with back issues. GMI operates as a business and grants franchises for businesses offering classes and products that help restore the body's primal architecture and movement patterns under the "Gokhale Method" trademarks and related marks. GMI grants franchise licenses in a number of states and countries to practitioners who conduct classes in their franchise area in accordance with the Gokhale Method.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable is primarily comprised of net royalty receivables from franchise, teachers, or class fees collected by GME.

• 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.

• 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.

Source: Item 22 — CONTRACTS (FDD page 34)