How much notice will Gokhale Method provide before changing the Teacher Referral Fee?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
12 hereof.
- 5.9. Teacher Referral Fees. Should you refer to us a new teacher for the Gokhale Method, and that teacher is accepted by us as a teacher and becomes qualified by us to teach the System, we will pay you a Teacher Referral Fee in accordance with our Teacher Referral Fee Schedule in effect as of the time of payment. The Teacher Referral Fee Schedule in effect as of the signing of this Agreement is $100 and is subject to change from time to time in our reasonable discretion upon thirty (30) d
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the Teacher Referral Fee schedule, including any changes, will be communicated to franchisees with thirty (30) days' notice. The initial Teacher Referral Fee schedule in effect when the franchise agreement is signed is $100.
This means that Gokhale Method retains the right to adjust the referral fee it pays to franchisees who successfully recruit new teachers. While the initial fee is set at $100, this amount is not guaranteed to remain constant throughout the term of the franchise agreement. Gokhale Method commits to providing a 30-day heads-up before any changes take effect, allowing franchisees to adjust their recruitment strategies accordingly.
For a prospective franchisee, this highlights the importance of understanding that certain revenue streams or cost structures can be subject to change. While a $100 referral fee might be an attractive incentive initially, franchisees should be prepared for the possibility of this fee being adjusted upwards or downwards based on Gokhale Method's discretion and market conditions. It would be prudent to inquire about the factors that might trigger a change in the referral fee and the potential range of adjustments to better assess the long-term financial implications.