How does a Gokhale Method franchisee pay Billing Fees for GMI-Pay Students?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
it is paid.
- 5.2. Student Payments. All payments collected from your students for teaching the System, including but not limited to continuing training or programs which may be offered from time to time will be paid by the student directly to us through our payment system ("GMI-Pay Students") unless such fees are paid by the student to you in cash or by paper check or a credit card system in your facility ("Direct-Pay Students").
- 5.3. Royalty Fee Direct Pay. For Direct-Pay Students you agree to pay us a non-refundable royalty ("Royalty") during the Term in accordance with our Royalty Schedule in effect as of the time of payment. The Royalty 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.
- 5.4. Royalty Fee GMI Pay. For GMI-Pay Students we will collect our royalty, Billing Fee and any other amounts that you owe us from the amount tendered by the student to us. After such deductions, we will
remit the balance to you in accordance with our payment schedule.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are required to pay a Billing Fee for students who utilize the GMI-Pay system. Specifically, when students pay Gokhale Method directly through their payment system (GMI-Pay), Gokhale Method will deduct the royalty fee, Billing Fee, and any other outstanding amounts owed by the franchisee from the student's payment. The remaining balance is then remitted to the franchisee according to a payment schedule.
The Billing Fee schedule, like the Royalty Schedule, is detailed in Exhibit A of the Franchise Agreement. It's important to note that these schedules are subject to change at Gokhale Method's discretion, provided they give franchisees 30 days' notice. This means that the costs associated with billing could fluctuate over the term of the franchise agreement.
For a prospective franchisee, this means that the actual revenue received from students using GMI-Pay will be net of these fees and royalties. Understanding the current Billing Fee Schedule in Exhibit A is crucial for accurately projecting potential earnings. Additionally, franchisees should stay informed of any changes to the fee structure to avoid surprises and maintain accurate financial planning. Franchisees should also inquire about the typical frequency and magnitude of changes to the Billing Fee Schedule to better anticipate potential cost fluctuations.