How are royalties collected for GMI-Pay Students of a Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, royalty fees for students who pay through the GMI-Pay system are collected directly by Gokhale Method Institute (GMI). When a student pays through the GMI-Pay system, GMI will deduct the royalty fee, billing fee, and any other amounts owed by the franchisee from the student's payment.
After these deductions, GMI will remit the remaining balance to the franchisee according to their payment schedule. The specific schedule of fees and royalties is included in Exhibit A of the Franchise Agreement and is subject to change at GMI's discretion with thirty days' notice.
In addition to royalty fees, franchisees are also responsible for paying a billing fee for students using the GMI-Pay system. This billing fee schedule is also included in Exhibit A of the Franchise Agreement and is subject to change with thirty days' notice. Prospective franchisees should carefully review Exhibit A to understand the current royalty and billing fee structure and how these fees may impact their revenue from GMI-Pay students.