On what page number of the Gokhale Method FDD are the Notes to Financial Statements located?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
NOTE 1 - NATURE OF OPERATIONS
Gokhale Method Institute, Inc. ("GMI" or the "Company") was incorporated in 2011 as a California Sub-Chapter S Corporation by Gokhale Method Enterprise, Inc. ("GME"). The subsidiary was formed to franchise the Gokhale Method of dealing with back issues. GMI operates as a business and grants franchises for businesses offering classes and products that help restore the body's primal architecture and movement patterns under the "Gokhale Method" trademarks and related marks. GMI grants franchise licenses in a number of states and countries to practitioners who conduct classes in their franchise area in accordance with the Gokhale Method.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General and Basis of Presentation
This summary of significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in United States of America ("U.S. GAAP") and have been consistently applied in the preparation of the financial statements.
Use of Estimates
Management of the Company has made certain estimates and assumptions relating to the reporting of assets, liabilities, results of operations, and the disclosure of contingent assets and liabilities to prepare these financial statements in accordance with accounting principles generally accepted in the United States of America. Actual results could differ from these estimates.
Cash and Cash Equivalents
For the purposes of the statement of cash flows, the Company considers all highly liquid investments and investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on hand.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounts Receivable and Allowance for Doubtful Accounts
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method FDD, the Notes to Financial Statements can be found starting on page 76. These notes are an integral part of understanding Gokhale Method's financial statements, as they provide detailed explanations of the figures and accounting practices used. For instance, Note 1 describes the nature of Gokhale Method Institute, Inc.'s operations, including its incorporation and franchising activities. Note 2 outlines the significant accounting policies employed in preparing the financial statements.
These notes offer transparency into how Gokhale Method manages its finances and adheres to accounting standards. Prospective franchisees should carefully review these notes to gain a comprehensive understanding of the company's financial health and stability. Understanding these policies can help a franchisee assess the financial risks and opportunities associated with investing in a Gokhale Method franchise.
Specifically, the notes cover important aspects such as the use of estimates in financial reporting, cash and cash equivalents, accounts receivable, and subsequent events. For example, the note on subsequent events explains how events occurring after the balance sheet date are treated in the financial statements. This level of detail is crucial for making informed decisions about the franchise opportunity.