How are payments collected from students for Gokhale Method classes handled?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| Item | Fee | Comments |
|---|---|---|
| Royalties | ||
| Gokhale® Foundations | $180 | Per student and course |
| Gokhale® Consultation | $30 | Per student and lesson |
| Continuing Education Class | $10 | Per student and hour |
| Billing Fee | 2.5% | Of transaction |
| Annual Teachers' Meeting Fee | $450 | Paid annually, upon registration for the Annual Meeting |
| Teacher Webinar Fee | $240 | Paid annually |
| Gokhale® Active (Premium) | $140 | Paid annually |
| Membership Fee |
Accounts receivable is primarily comprised of net royalties' receivables from franchise, teachers or class fees collected by GME.
All payments due Franchisee for activities within a calendar month will be made by us within 10 days of the close of such month.
We may deduct any charges, fees or other payments you owe us, including those for continuing education or for products or equipment purchased from us, or any other fees or charges, and remit the balance to you.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method franchisees are responsible for collecting fees from students for courses and classes. Gokhale Method collects royalties from franchisees based on student enrollment in various programs. Specifically, Gokhale Method charges franchisees $180 per student for the Gokhale® Foundations course, $30 per student for a Gokhale® Consultation lesson, and $10 per student per hour for Continuing Education Classes.
Additionally, Gokhale Method charges a billing fee of 2.5% of the transaction amount. The FDD states that accounts receivable is primarily comprised of net royalties receivables from franchise, teachers, or class fees collected by GME (Gokhale Method Enterprise, Inc.). This indicates that while the franchisee collects the initial payment from students, a portion of these fees is then remitted to Gokhale Method as royalties and other fees.
Payments due to the franchisee for activities within a calendar month are made by Gokhale Method within 10 days of the close of that month. Gokhale Method may deduct any charges, fees, or other payments owed to them by the franchisee, including those for continuing education, products, or equipment purchased, before remitting the balance. This system ensures that Gokhale Method receives its share of the revenue generated by the franchisee's activities, while also allowing the franchisee to retain a portion of the earnings. Prospective franchisees should be aware of these fees and how they impact their overall profitability.
It is important for potential franchisees to fully understand the fee structure and payment processes outlined in the Franchise Agreement and related exhibits to accurately forecast their potential earnings and manage their cash flow effectively. Understanding these financial obligations is crucial for the success and sustainability of a Gokhale Method franchise.