In a Gokhale Method contract, what steps are involved in determining the transaction price?
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. 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.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the transaction price is determined by the Billing Fee Schedule, Price List, and Teacher Referral Fee Schedule. The Billing Fee Schedule, which includes fees for continuing training programs, the Annual Meeting, teacher webinars, and membership in Gokhale® Active (Premium), is in effect as of the signing of the Franchise Agreement and is included in Exhibit A. This schedule is subject to change at Gokhale Method's discretion with thirty days' notice.
For product sales, franchisees may purchase Gokhale Method branded products from Gokhale Method or its approved vendors at the then-current wholesale prices published in their Price List, which also includes retail prices. If a franchisee refers a new teacher who is accepted and qualified by Gokhale Method, the franchisee will receive a Teacher Referral Fee, according to the Teacher Referral Fee Schedule. As of the signing of the agreement, this fee is $100, and it is also subject to change with thirty days' notice.
Gokhale Method also has the option to purchase equipment from the franchisee upon termination or expiration of the agreement. This purchase will be at fair market value or 60% of the franchisee's original investment, whichever is less. If the parties cannot agree on a price, an independent appraisal will be conducted at Gokhale Method's expense, and the appraiser's determination will be binding. Gokhale Method can offset amounts due from the franchisee, including the appraisal cost, against any payment for the equipment.