What was the net income for Gokhale Method in 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 2023 | |
|---|---|
| REVENUE | |
| Royalties | $ 42,057 |
| Franchise fees | 11,188 |
| Continuing education | 28,368 |
| Total revenue | 81,613 |
| OPERATING EXPENSES | |
| Selling expenses | 3,943 |
| General and administrative expenses | 73,135 |
| Total operating expenses | 77,078 |
| Income from operations | 4,535 |
| Tax provision | 800 |
| Net |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the net income for the company in 2023 was $3,735. This figure represents the profit remaining after all revenues and expenses, including a tax provision of $800, have been accounted for. The income from operations before the tax provision was $4,535.
Breaking down the revenue streams, Gokhale Method generated $42,057 in royalties, $11,188 from franchise fees, and $28,368 from continuing education programs, totaling $81,613 in revenue. Operating expenses totaled $77,078, which included $3,943 in selling expenses and $73,135 in general and administrative expenses.
For a prospective franchisee, understanding these figures provides insight into the financial performance of Gokhale Method. While the net income is a relatively small amount, it's important to consider the revenue composition and expense structure. Franchisees should investigate further into the details behind the general and administrative expenses to understand where the bulk of the company's spending is allocated. Additionally, understanding the royalties, franchise fees, and continuing education revenue streams can help a franchisee project their potential earnings and assess the overall financial health of the franchise system.