What happens if a payment to Gokhale Method is overdue by 30 days or more?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, if a franchisee's payment is overdue by 30 days or more, the franchisee must pay Gokhale Method immediately upon demand the overdue amount, in addition to interest.
The interest will accrue from the date the payment was originally due until the date Gokhale Method receives it. The interest rate is set at 18 percent per annum, or the highest rate permitted by law, whichever is less.
This clause ensures that Gokhale Method is compensated for late payments and that franchisees are incentivized to make timely payments. Prospective franchisees should be aware of this financial obligation and factor it into their budget and financial planning to avoid incurring additional costs due to late payments.