What is the Gokhale Method's policy on changes to the Teacher Referral Fee Schedule?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
12 hereof.
- 5.9. Teacher Referral Fees. Should you refer to us a new teacher for the Gokhale Method, and that teacher is accepted by us as a teacher and becomes qualified by us to teach the System, we will pay you a Teacher Referral Fee in accordance with our Teacher Referral Fee Schedule in effect as of the time of payment. The Teacher Referral Fee Schedule in effect as of the signing of this Agreement is $100 and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice. Accepting and qualifying such Teacher will be at Franchisor's sole
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the Teacher Referral Fee Schedule, which is initially set at $100, is subject to change at the Gokhale Method's discretion. Gokhale Method will provide a thirty (30) days' notice to franchisees before implementing any changes to the schedule. The referral fee is paid to a franchisee who refers a new teacher to Gokhale Method, provided that the referred teacher is accepted and qualified by Gokhale Method to teach the Gokhale Method system.
This policy allows Gokhale Method to adjust the referral fee based on various factors, such as market conditions or the need to incentivize teacher recruitment. While the initial fee is set at $100, this amount could increase or decrease over time. The discretion afforded to Gokhale Method provides flexibility but also introduces some uncertainty for franchisees who may rely on these referral fees as a source of income.
Prospective franchisees should consider this policy when evaluating the potential benefits of referring new teachers. While the referral fee can be a positive incentive, its variable nature means that it cannot be guaranteed as a consistent source of revenue. Franchisees should factor this into their financial planning and consider the potential impact of changes to the Teacher Referral Fee Schedule on their overall earnings.