How much revenue did Gokhale Method generate from franchise fees in 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
invoice for the net royalty.
Our franchise agreements generally provide for an initial non-refundable franchise fee $4,000 per franchise for five-years term. We classify this as deferred revenue in our balance sheet and recognized over the franchise term.
The agreement also requires franchisees to pay continuing education fees including annual meeting fees, online university membership fees and teacher teleseminar fees. These fees are included in continuing education caption o
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Gokhale Method does not explicitly state the total revenue generated from franchise fees in 2023. However, it does provide some relevant information regarding franchise fees and revenue recognition.
The FDD mentions that the standard initial non-refundable franchise fee is $4,000 for a five-year term. Gokhale Method classifies this fee as deferred revenue on their balance sheet and recognizes it over the franchise term. Additionally, franchisees are required to pay continuing education fees, such as annual meeting fees, online university membership fees, and teacher teleseminar fees, which are included in the continuing education caption of the Statement of Operations.
While the FDD provides information on the initial franchise fee and other fees franchisees must pay, it lacks specific details on the total revenue Gokhale Method generated from these fees in 2023. A prospective franchisee should consider asking the franchisor for the total revenue generated from franchise fees during 2023 to better understand the financial performance and stability of the franchise system.