What 'other' revenue did the Gokhale Method recognize as of December 31, 2020?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
regated revenue are as follows:
| December 31, 2021 | December 31, 2020 | |
|---|---|---|
| Revenue recognition | ||
| Franchise fees | $ 25,998 | $ 25,576 |
| Royalty | 28,918 | 42,599 |
| Other | 13,480 | 7.670 |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Gokhale Method's revenue recognition includes franchise fees, royalties, and other revenue. As of December 31, 2020, Gokhale Method recognized $7,670 in 'other' revenue.
For a prospective franchisee, understanding the composition of Gokhale Method's revenue streams is crucial. While franchise fees and royalties are standard in franchising, 'other' revenue could encompass various sources such as product sales, workshops, or additional services. Knowing the specifics of what constitutes this 'other' revenue can help a franchisee anticipate potential income streams and assess the overall financial health of the franchise system.
It's important to note that the FDD also provides figures for franchise fees and royalties for the same period. Franchise fees were reported at $25,576 and royalties at $42,599. Comparing these figures gives a sense of the relative importance of each revenue stream to Gokhale Method. A prospective franchisee should investigate what activities generate 'other' revenue to evaluate its stability and potential for growth.
Franchisees should also be aware that these figures represent past performance and are not a guarantee of future results. The 'other' revenue may fluctuate based on various factors, including market conditions, the franchisee's efforts, and the franchisor's initiatives. Therefore, it is essential to conduct thorough due diligence and seek clarification from Gokhale Method regarding the nature and sustainability of this 'other' revenue stream.