What information about the Company is provided in relation to related parties in the Gokhale Method FDD?

According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method Institute, Inc. ("GMI" or the "Company") was incorporated in 2011 as a California Sub-Chapter S Corporation by Gokhale Method Enterprise, Inc. ("GME"). The FDD states that GMI was formed as a subsidiary to franchise the Gokhale Method of dealing with back issues. GMI operates as a business and grants franchises for businesses offering classes and products that help restore the body's primal architecture and movement patterns under the "Gokhale Method" trademarks and related marks.

This indicates that Gokhale Method Institute, Inc. is a wholly-owned subsidiary of Gokhale Method Enterprise, Inc. This relationship is important for prospective franchisees to understand because it clarifies the organizational structure and identifies the ultimate parent company. Understanding the relationship between GMI and GME can provide insights into the decision-making processes and financial backing of the franchise system.

Furthermore, the financial statements included in the FDD are for Gokhale Method Institute, Inc., and the independent auditor's report is addressed to the Board of Directors of Gokhale Method Institute, Inc. (a wholly owned subsidiary of Gokhale Method Enterprise, Inc.). The accounts receivable for Gokhale Method Institute, Inc. primarily consist of net royalties' receivables from franchise, teachers or class fees collected by GME. This shows that GME collects the royalties and fees, which are then accounted for as receivables by GMI. This detail is crucial for franchisees as it highlights the flow of funds within the Gokhale Method organization and how revenues are managed between the parent company and the franchising subsidiary.