How does Gokhale Method remit the balance to the franchisee after deductions from GMI-Pay Student payments?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
ys' notice.
- 5.4. Royalty Fee GMI Pay. For GMI-Pay Students we will collect our royalty, Billing Fee and any other amounts that you owe us from the amount tendered by the student to us. After such deductions, we will
remit the balance to you in accordance with our payment schedule. The schedule of fees and royalties in effect as of the signing of this Agreement is included in the annexed Exhibit A and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice.
- 5.5. Billing Fees. For GMI-Pay Students you will pay us a Billing Fee in accordance with our Billing Fee Schedule in effect as of the time of payment. The Billing Fee Schedule in effect as of the signing of this Agreement is included in the annexed Exhibit A and is subject to change from time to time in our reasonable discretion upon thirty (30) days' notice.
- 5.6.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, when students pay Gokhale Method directly through their payment system (GMI-Pay Students), Gokhale Method will collect royalties, billing fees, and any other amounts owed by the franchisee from the student's payment. After these deductions, Gokhale Method will remit the remaining balance to the franchisee according to their payment schedule. The specific schedule of fees and royalties is detailed in Exhibit A of the Franchise Agreement and is subject to change with 30 days' notice.
For students who pay the franchisee directly via cash, check, or credit card (Direct-Pay Students), the franchisee is responsible for paying a royalty to Gokhale Method. This royalty payment is non-refundable and must be paid in accordance with the Royalty Schedule, also found in Exhibit A.
All payments due to the franchisee for their activities within a calendar month will be made by Gokhale Method within 10 days of the close of that month. Gokhale Method retains the right to deduct any charges, fees, or other payments that the franchisee owes them, including those for continuing education, products, or equipment purchased from Gokhale Method, before remitting the balance to the franchisee. This ensures that all outstanding obligations are settled before the franchisee receives their payment.