What are the ongoing financial obligations for a Gokhale Method franchisee, considering the royalty fees in Item 6 and any other recurring expenses mentioned in other Items?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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You must pay an additional billing fee of 2.5 percent for students who are processed through our billing facility.
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- In any given year, GMI may offer franchisees an alternative continuing education program to satisfy the Teachers' Annual Meeting requirement.
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- Membership in Gokhale® Active (Premium) is required in order to maintain your qualification to teach the Gokhale Method. The current fee is $140 per year, subject to change in our discretion. Gokhale® Active (Premium) is also open to students who have taken Gokhale® Foundations, and Franchisees receive a referral fee for graduates they refer to, and who join, Gokhale® Active (Premium).
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- We expect to change or add to continuing training requirements over time, and reserve the right to charge for such education.
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees have several ongoing financial obligations. The royalty fees are determined as outlined in Exhibit A of the Franchise Agreement, and the franchisor retains the right to modify these rates with a 30-day notice. Additionally, if Gokhale Method processes student billing, a franchisee must pay a billing fee of 2.5% of the revenue. Franchisees are also required to maintain a Gokhale® Active (Premium) membership, which currently costs $140 per year, although this fee is subject to change.
Continuing education is another potential ongoing expense for Gokhale Method franchisees. While the franchisor may offer alternative continuing education programs to satisfy annual meeting requirements, they also reserve the right to change or add to these requirements over time, potentially charging for such education. Although specific additional formats or requirements have not been added yet, the estimated cost for any particular continuing training program is between $100 and $500.
Beyond these fees, Gokhale Method franchisees may also incur costs for promotional materials, which the franchisor intends to sell at a reasonable cost, estimating a total annual investment of a few hundred dollars. It's important to note that these ongoing fees can change, and franchisees should carefully review Exhibit A of the Franchise Agreement and stay informed of any updates from the franchisor.