When is the royalty fee due for the Gokhale Method franchise?
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. |
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the royalty fee, which ranges from $10 to $180 per person per course, is due at one of two possible times. The first is whichever comes earlier: when Gokhale Method collects the course fee from the franchisee's customer, or within 5 business days after the close of the month when the franchisee collects from the customer. This is contingent on the student fee becoming non-refundable.
This payment schedule means that Gokhale Method franchisees must have systems in place to track when student fees are collected and when they become non-refundable. They must also be prepared to remit royalty payments promptly to avoid late fees or other penalties. The specific royalty rate is detailed in Exhibit A of the Franchise Agreement, and the franchisor retains the right to change these rates with 30 days' notice.
Franchisees should pay close attention to the terms outlined in Exhibit A and stay informed of any changes to the royalty rates. Understanding these payment terms is crucial for managing cash flow and maintaining a positive relationship with Gokhale Method.