What is the franchisee's obligation regarding royalty payments for Direct-Pay Students in the Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
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 royalty fee for students who pay them directly. These students are referred to as "Direct-Pay Students," meaning they pay the franchisee in cash, by paper check, or through a credit card system at the franchisee's facility.
The royalty fee is non-refundable and must be paid to Gokhale Method Institute, Inc. during the term of the Franchise Agreement. The specific amount of the royalty is determined by the Royalty Schedule in effect at the time of payment. This schedule is included as Exhibit A to the Franchise Agreement.
It is important to note that the Royalty Schedule is subject to change at Gokhale Method's discretion, but they must provide franchisees with thirty days' notice before any changes take effect. Franchisees should carefully review Exhibit A and any subsequent updates to the Royalty Schedule to understand their royalty obligations for Direct-Pay Students.