factual

Does Gokhale Method receive payments from any suppliers?

Gokhale_Method Franchise · 2024 FDD

Answer from 2024 FDD Document

We do not receive payments from any suppliers.

There are no purchasing or distribution cooperatives for the Franchised Business. We do not negotiate Franchisee purchase arrangements with suppliers.

We do not provide any particular benefits to franchisees who purchase from particular suppliers or otherwise do business with particular persons.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)

What This Means (2024 FDD)

According to Gokhale Method's 2024 Franchise Disclosure Document, Gokhale Method does not receive payments from any suppliers. The FDD also states that Gokhale Method does not engage in purchasing or distribution cooperatives, nor does it negotiate franchisee purchase arrangements with suppliers. Furthermore, Gokhale Method does not provide any particular benefits to franchisees who purchase from particular suppliers or otherwise do business with particular persons.

This arrangement means that franchisees are generally free to choose their own suppliers for most items, provided they meet Gokhale Method's specifications. This can allow franchisees to shop around for the best prices and terms, potentially reducing their operating costs. However, franchisees must still ensure that all purchased items meet Gokhale Method's standards to maintain uniformity and quality within the franchise system.

It is important to note that franchisees are required to purchase certain proprietary items directly from Gokhale Method, such as the Gokhale® Roller, Gokhale Pain-Free™ Chair, Stretchsit® Cushions, Gokhale® Wedges, Gokhale® Head Cushions, and copies of 8 Steps to a Pain-Free Back. Gokhale Method does derive revenue from these required purchases, estimating that franchisees will pay between $2,081 and $3,332 during their first year of operation for these items and continuing education fees. For the fiscal year ended December 31, 2023, total sales of required items accounted for $28,368, or 35 percent of Gokhale Method's total revenue of $81,612.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.