Where can I find the specifics regarding advertising expenditures and contributions for a Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
D PROMOTION
Recognizing the value of advertising, marketing, and promotion, and the importance of the standardization of advertising, marketing, and promotion programs to the furtherance of the goodwill and public image of the System, the parties agree as follows:
- 12.1. Local Marketing, Advertising, and Promotion Expenditure. You shall follow the guidelines in the Teachers' Manual and Policy Statements regarding marketing, advertising and promotion and upon our request, you shall provide satisfactory evidence of all Local Marketing, Advertising and Promotion Expenditures in such manner as we shall direct. Such guidelines may include, but are not limited to offering free promotional classes. You shall bear the cost of all such activities. You also agree to pay us for any advertising materials that we create for you and at your request, including the costs of creating such materials and reproducing them.
- 12.2. Advertising Materials. All advertising and promotion by you shall be in such media and of such type and format as we may approve, shall be conducted in a dignified manner and shall conform to such standards and requirements as we may specify. You shall not use any advertising or promotional plans or materials relating to the Gokhale Method unless and until you have received written approval from us. You acknowledge and agree that we may require, in our sole business judgment, that in all advertising relating to the Gokhale Method that you use must designate only our designated Website, our designated email address and your phone number for contacting you.
13. INSURANCE
- 13.1. Minimum Insurance Requirements.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, specifics regarding advertising expenditures and contributions can be found in Section 12 of Item 22, which discusses advertising and promotion. As a franchisee, you are expected to adhere to the guidelines outlined in the Teachers' Manual and Policy Statements concerning marketing, advertising, and promotion. You may be required to provide evidence of your local marketing, advertising, and promotion expenditures as directed by Gokhale Method. The franchisee bears the costs for these local activities, including any advertising materials that Gokhale Method creates at your request.
All advertising and promotional materials must be approved by Gokhale Method and conducted in a dignified manner, adhering to their specified standards. Gokhale Method may require that all advertising designate their website, email address, and the franchisee's phone number for contact purposes. Section 5.8 of Item 22 also states that franchisees are required to make expenditures and contributions for advertising and brand promotion as specified in Section 12.
Furthermore, Item 22 includes financial information regarding advertising expenses incurred by Gokhale Method. For the year ended December 31, 2022, advertising expenses were $2,451. In prior years, the advertising expenses were $4,917 and $2,940 for the years ended December 31, 2021 and 2020, respectively. These expenses are included in general and administrative expenses. This information gives prospective franchisees insight into the advertising investment made by Gokhale Method at the corporate level.