What is the range of the royalty fee for the Gokhale Method franchise, and where can I find more details about it in the Franchise Agreement?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPEOFFEE | AMOUNT | DUEDATE | REMARKS |
|---|---|---|---|
| Royalty | $10 – $180 per person per course; see Ex. A to theFranchiseAgreement | Theearlierofwhenwecollect thecoursefeefromyour customer,orwithin5business daysafterthecloseofthemonth whenyoucollectfromthe customer,providedthestudent feehasbecomenon-refundable. | Seenote1. |
Notes:
- The royalty payable is set forth on Exhibit A to the Franchise Agreement. See Exhibit A to the Franchise Agreement for full details. The royalty rates set forth on Exhibit A to the Franchise Agreement are subject to change at Franchisor's discretion, upon 30 days' notice.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the royalty fee ranges from $10 to $180 per person per course. The exact amount depends on the specifics outlined in Exhibit A of the Franchise Agreement.
The royalty fee is due either when Gokhale Method collects the course fee from the customer or within five business days after you collect the fee, provided the student fee has become non-refundable. This means franchisees need to manage their cash flow to ensure timely royalty payments based on when student fees are collected and become non-refundable.
Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to understand the complete details of how the royalty fee is calculated and any potential changes to the royalty rates. Note 1 in Item 6 states that the royalty rates set forth on Exhibit A to the Franchise Agreement are subject to change at Gokhale Method's discretion, upon 30 days' notice. This highlights the importance of understanding the terms and conditions related to royalty payments and the potential for these rates to change over time.