What was the initial non-refundable franchise fee for the Gokhale Method franchise agreement until 2016?

According to the 2024 Gokhale Method Franchise Disclosure Document, the initial non-refundable franchise fee for a three-year term was $3,500 and $4,000 per franchise until 2016. After 2016, the franchise agreement term was updated to five years. This fee is classified as deferred revenue and is recognized over the franchise term.

For a prospective Gokhale Method franchisee, this means that the initial investment required to start the franchise was lower for agreements entered into before 2016, with fees of $3,500 or $4,000 depending on the term length. However, those agreements had a shorter term of three years. After 2016, the initial fee remained at $4,000, but the franchise term was extended to five years.

The initial franchise fee is non-refundable, meaning that once paid, the franchisee cannot get this money back, even if they decide not to proceed with opening the franchise. This is a common practice in franchising, as the fee covers the franchisor's costs associated with granting the franchise, such as training and support. The deferred revenue classification indicates that Gokhale Method recognizes this revenue over the life of the franchise agreement, rather than all at once upon receipt.

It is important for potential franchisees to understand the terms of the franchise agreement, including the length of the term and the fees involved. They should also consider the implications of the non-refundable nature of the initial franchise fee and factor this into their decision-making process.