What are 'GMI-Pay Students' in the context of a Gokhale Method franchise?
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. The schedule of fees and royalties 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.
- 5.5. Billing Fees. For GMI-Pay Students you will pay us a Billing Fee in accordance with our Billing Fee Schedule in effect as of the time of payment.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, 'GMI-Pay Students' refers to students who make payments directly to Gokhale Method Institute (GMI) through their payment system for classes and training. This is in contrast to 'Direct-Pay Students' who pay the franchisee directly via cash, check, or a credit card system at the franchisee's facility.
When students pay through the GMI-Pay system, Gokhale Method collects the full payment from the student and then deducts royalties, billing fees, and any other amounts owed by the franchisee before remitting the balance to the franchisee. This process ensures that Gokhale Method receives its fees promptly and manages the payment distribution.
For a prospective franchisee, understanding the distinction between GMI-Pay and Direct-Pay students is crucial for managing cash flow and accounting. The franchisee needs to be aware of how royalties and fees are collected under each payment method and how it impacts their revenue. The franchisee should also be aware that the royalty and billing fee schedules are subject to change with a 30-day notice from Gokhale Method.