Are Gokhale Method franchisees required to pay continuing education fees?
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.
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 continuing education fees. The FDD states that franchisees must pay regular fees for continuing training programs, which may include fees for the Annual Meeting, teacher webinars, and membership in Gokhale® Active (Premium). The specific fees are outlined in the Billing Fee Schedule, which is subject to change with 30 days' notice.
Continuing training is essential for Gokhale Method franchisees to maintain their approval to teach the Approved Formats. Failure to participate in required continuing training programs may lead to suspension of the franchisee's right to teach the Gokhale System until the training is completed and re-approval is granted. If a franchisee teaches while suspended, Gokhale Method may terminate the Franchise Agreement immediately.
The FDD also indicates that Gokhale Method may deduct continuing education fees from payments owed to the franchisee. This means that any earnings due to the franchisee could be reduced by the amount of these fees, ensuring that Gokhale Method receives timely payment for the training programs. Franchisees are responsible for all expenses associated with attending these training programs, including transportation, lodging, and meals.
Overall, the continuing education requirements and associated fees are a significant aspect of the Gokhale Method franchise system. These measures ensure that franchisees stay updated with the latest techniques and standards, which helps maintain the quality and reputation of the Gokhale Method. Prospective franchisees should carefully review the Billing Fee Schedule and consider these ongoing costs when evaluating the financial viability of the franchise.