How much notice will Gokhale Method provide before changing the royalty rates?

According to Gokhale Method's 2024 Franchise Disclosure Document, the royalty rates detailed in Exhibit A of the Franchise Agreement are subject to change at Gokhale Method's discretion. Gokhale Method will provide franchisees with 30 days' notice before implementing any changes to these royalty rates.

This means that as a prospective franchisee, you should be aware that the royalty rates you initially agree to are not necessarily fixed for the duration of your franchise agreement. Gokhale Method retains the right to adjust these rates, which could impact your profitability and overall financial planning. It is important to factor in the potential for royalty rate increases when assessing the financial viability of a Gokhale Method franchise.

While a 30-day notice period provides some time to adjust to the changes, it is relatively short. In the franchise industry, notice periods can vary, but it's not uncommon to see longer periods, especially for significant changes like royalty rates. Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to fully understand how the royalty is calculated and under what conditions Gokhale Method might choose to exercise its right to change the rates. Understanding these conditions can help you anticipate and prepare for potential changes during the term of your franchise agreement.