From whom must a Gokhale Method franchisee purchase furnishings and equipment?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
To ensure that high and uniform standards of service and quality are maintained, you must operate your Gokhale Method Franchised Business in strict conformity with our methods, standards, specifications, protocols and customer service requirements, and you must purchase certain supplies, fixtures, and equipment from us. Except for the proprietary items that we supply, you may purchase supplies, fixtures and equipment from any source, so long as the items meet our specifications, which are listed below.
Approved Suppliers
Initial Equipment and Furnishings
Prior to opening your Franchised Business, you must purchase the following equipment and furnishings from us: a Gokhale® Roller, a Gokhale Pain-Free™ Chair, 8 Stretchsit® Cushions, 8 Gokhale® Wedges, 8 Gokhale® Head Cushions, 8 copies of 8 Steps to a Pain-Free Back, and sufficient shirts or uniforms (if required by us). You must also obtain an application proprietary to GMI for an iPhone; there is no charge for this application. There are no other suppliers for these items, because they are proprietary to us and GME. Because these items are proprietary to us, we do not authorize other sources to supply these items nor do we permit you to purchase them elsewhere. We do not supply the specifications of these items to third parties. Other than these items, you may purchase other required equipment and supplies from any source that can provide equipment and supplies that meet our specifications.
No officer of GMI owns any interest in any supplier of equipment, furnishings or supplies other than Esther Gokhale's ownership of GME itself.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are required to purchase specific items from the franchisor. These mandatory purchases include a Gokhale® Roller, a Gokhale Pain-Free™ Chair, 8 Stretchsit® Cushions, 8 Gokhale® Wedges, 8 Gokhale® Head Cushions, 8 copies of 8 Steps to a Pain-Free Back, and sufficient shirts or uniforms, if required. Additionally, franchisees must obtain an application proprietary to GMI for an iPhone, which is provided without charge. These items are proprietary to Gokhale Method and GME, meaning franchisees cannot source them from other suppliers.
Beyond these specific proprietary items, Gokhale Method franchisees have the flexibility to purchase other required equipment and supplies from any source, provided that these items meet the specifications set by Gokhale Method. The FDD specifies that Gokhale Method reserves the right to require franchisees to purchase additional equipment or supplies from them in the future.
The FDD indicates that Gokhale Method anticipates receiving between $2,081 and $3,332 from each franchisee during their first year of operation for required purchases, including continuing education fees. For the fiscal year ended December 31, 2023, total sales of required items accounted for $28,368, which is 35 percent of Gokhale Method's total revenue of $81,612. The franchise agreement also states that franchisees agree to purchase equipment, materials, products, supplies, and services from suppliers that Gokhale Method approves and designates in the Teacher Manual, Policy Statements, or otherwise in writing from time to time.
Prospective franchisees should be aware that the initial investment includes costs for furnishings and equipment purchased from Gokhale Method, as well as third-party vendors. The estimated range for these goods and services, including the initial $4,000 franchise fee, is between $6,081 and $7,932. Franchisees should carefully consider these required purchases and their potential impact on the overall cost of starting and operating a Gokhale Method franchise.