Is a Gokhale Method franchisee required to pay fees for continuing training programs?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
ail prices.
- 5.7. Continuing Education and Related Fees. You agree to pay to us our regular fees for continuing training programs and such other fees as we may require in the Teachers Manual or Policy Statements. These fees include, but are not limited to fees for the Annual Meeting, for teacher webinars, and for membership in Gokhale® Active (Premium). The Billing Fee Schedule for these fees 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.
- 5.8. Advertising Expenditures and Contributions. You shall make expenditures and contributions for advertising and brand promotion as specified in Section 12 hereof.
- 5.9. Teacher Referral Fees. Should you refer to us a new teacher for the Gokhale Method, and that teacher is accepted by us as a teacher and becomes qualified by us to teach the System, we will pay you a Teacher Referral Fee in accordance with our Teacher Referral Fee Schedule in effect as of the time of payment. The Teacher Referral Fee Schedule in effect as of the signing of this Agreement is $100 and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice. Accepting and qualifying such Teacher will be at Franchisor's sole discretion.
- 5.10. Payments. All payments due Franchisee for activities within a calendar month will be made by us within 10 days of the close of such month. We may deduct any charges, fees or other payments you owe us, including those for continuing education or for products or equipment purchased from us, or any other fees or charges, and remit the balance to you. All payments due Franchisor for activities within a calendar month will be made to us within 10 days of the close of such month. If any payment to us is overdue by thirty (30) days or more, you shall pay us immediately upon demand, in addition to the overdue amount, Interest on such amount from the date it was due until received by us. For purposes of this Agreement, Interest shall be at 18 percent per annum or the highest rate permitted by law, whichever is less.
6. OPENING OF FRANCHISED BUSINESS
- 6.1. Business Development. You shall develop and equip any location at which you teach at your own expense and in accordance with our standards, as set forth in the Teacher's Manual.
- 6.2. Local Regulations and Taxes. You shall be responsible, at your own expense, for complying with all local zoning, health and use regulations and classifications, and for obtaining all permits, certifications, and clearances required for the lawful operation of the Franchised Business, including, but not limited to, certificates of occupancy and business licenses, which may be required by federal, state or local laws, ordinances, or regulations, or which may be necessary or advisable owing to any restrictive covenants relating to the Location or required by the lessor.
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 fees for continuing training programs. The FDD specifies that franchisees must pay regular fees for continuing training programs and other fees as required in the Teacher's Manual or Policy Statements. These fees encompass the Annual Meeting, teacher webinars, and membership in Gokhale® Active (Premium). The Billing Fee Schedule, which includes these fees, is subject to change at Gokhale Method's discretion with thirty days' notice.
These ongoing training requirements are in place to ensure that franchisees maintain their approval to teach the Gokhale System's approved formats. The FDD states that failure to attend and participate in these programs may lead to suspension of the franchisee's right to teach until the training is completed and re-approval is granted. If a franchisee teaches while suspended, Gokhale Method reserves the right to terminate the Franchise Agreement immediately.
In addition to the fees for the training programs themselves, franchisees are responsible for all expenses associated with attending these programs, including transportation, lodging, and meals. Gokhale Method may also request franchisees to submit audio or video recordings of their teaching for peer review, as detailed in the Teacher's Manual. This peer review process requires the franchisee's consent.
Gokhale Method can deduct continuing education fees from payments due to the franchisee. This means that any income a franchisee earns can be directly offset by the costs of these required training programs, impacting the franchisee's cash flow. Prospective franchisees should carefully review the Billing Fee Schedule (Exhibit A) and the Teacher's Manual to understand the full scope of these costs and requirements.