Does Gokhale Method derive revenue from franchisees' purchase of required items?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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We will derive revenue from your purchase of required items. We estimate that the total amount that you will pay us for required purchases, including continuing education fees, will be between $2,081 and $3,332 during your first year of operation.
During our fiscal year ended December 31, 2023, our total revenue was $81,612. Total sales of required items was $28,368, or 35 percent of our total revenue. The total estimated proportion of all required purchases and leases in relation to all purchases and leases you will make in establishing the business is less than 25%. The total estimated proportion of all required purchases and leases in relation to all purchases and leases you will make in operating the business during your first year of operation is less t
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, Gokhale Method does derive revenue from franchisees' purchase of required items. Franchisees are required to purchase certain supplies, fixtures, and equipment from Gokhale Method. These proprietary items include a Gokhale® Roller, a Gokhale Pain-Free™ Chair, Stretchsit® Cushions, Gokhale® Wedges, Gokhale® Head Cushions, copies of 8 Steps to a Pain-Free Back, and shirts or uniforms.
The 2024 FDD states that Gokhale Method estimates that the total amount a franchisee will pay for required purchases, including continuing education fees, will be between $2,081 and $3,332 during the first year of operation. During the fiscal year ended December 31, 2023, Gokhale Method's total revenue was $81,612, with total sales of required items accounting for $28,368, or 35 percent of their total revenue.
The FDD also indicates that the total estimated proportion of all required purchases and leases in relation to all purchases and leases a franchisee will make in establishing the business is less than 25%. The total estimated proportion of all required purchases and leases in relation to all purchases and leases a franchisee will make in operating the business during their first year of operation is also less than 25%.