Can Gokhale Method deduct payments for equipment purchased from them from payments due to a Gokhale Method franchisee?

According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method can deduct payments for equipment or products purchased by the franchisee from payments due to the franchisee. Specifically, Gokhale Method will remit payments due to the franchisee for their activities within a calendar month within 10 days of the month's close. However, Gokhale Method retains the right to deduct any charges, fees, or other payments that the franchisee owes to them.

This includes deductions for continuing education, products, or equipment purchased from Gokhale Method. This clause also extends to any other fees or charges that the franchisee may owe Gokhale Method. After deducting these amounts, Gokhale Method will remit the balance to the franchisee.

This policy is fairly common in franchising, as it allows the franchisor to efficiently collect outstanding debts from franchisees. However, it's important for prospective Gokhale Method franchisees to maintain clear records of all transactions with the franchisor to ensure accurate accounting and avoid potential disputes over deductions.