What exhibit in the Gokhale Method Franchise Agreement contains the royalty payable?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPEOFFEE | AMOUNT | DUEDATE | REMARKS |
|---|---|---|---|
| Royalty | $10 – $180 per person per course; see Ex. A to theFranchiseAgreement | Theearlierofwhenwecollect thecoursefeefromyour customer,orwithin5business daysafterthecloseofthemonth whenyoucollectfromthe customer,providedthestudent feehasbecomenon-refundable. | Seenote1. |
Notes:
- The royalty payable is set forth on Exhibit A to the Franchise Agreement. See Exhibit A to the Franchise Agreement for full details. The royalty rates set forth on Exhibit A to the Franchise Agreement are subject to change at Franchisor's discretion, upon 30 days' notice.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the royalty fees are detailed in Exhibit A of the Franchise Agreement. The royalty fees range from $10 to $180 per person per course. The exact amount depends on the specifics outlined in Exhibit A.
The timing of royalty payments is structured around when Gokhale Method collects course fees from the customer. Franchisees must remit the royalty payment to Gokhale Method either when they collect the course fee from the customer or within five business days after the close of the month in which they collected the fee, whichever comes first. This is contingent upon the student fee becoming non-refundable, ensuring that royalties are paid on confirmed revenue.
It's important to note that the royalty rates specified in Exhibit A are subject to change at Gokhale Method's discretion. However, Gokhale Method is required to provide franchisees with a 30-day notice before implementing any changes to the royalty rates. This allows franchisees some time to adjust their financial planning in response to potential rate adjustments.