What is the par value of the common stock (voting shares) for Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2021 | 2020 | |||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | S | 120,520 | 5 | 112,072 |
| Accounts receivable, net | 4,941 | 3,344 | ||
| Other current assets | - | - | 428 | |
| TOTAL ASSETS | S | 125,461 | S | 115,844 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable | 5 | 8,652 | $ | 6,731 |
| Deferred revenue | 4,825 | 13,248 | ||
| Payable to Teachers | 1,365 | |||
| Other current liabilities | - | 138 | _ | 138 |
| TOTAL LIABILITIES | _ | 14,980 | 1 | 20,117 |
| STOCKHOLDERS' EQUITY | ||||
| Common stock (1,000 voting shares anthorized, 500 shares issued and | 5 | 5 | ||
| outstan |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the par value of common stock (voting shares) is $0.01. This is based on the fact that Gokhale Method has 1,000 voting shares authorized, with 500 shares issued and outstanding.
The par value is a nominal value assigned to shares when they are first issued by the company. It is the minimum price for which a company can sell its shares. However, the market value of the shares can be significantly higher, depending on the company's performance and investor demand.
For a prospective Gokhale Method franchisee, the par value of the common stock is not a significant factor in their decision to invest in a franchise. The more relevant factors are the initial franchise fee, the ongoing royalty fees, and the potential profitability of the franchise. However, understanding the company's capital structure can provide insights into its financial stability and management practices.