When is the royalty fee due for a 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. |
| BillingFee | 2.5percentper transaction | Uponthestudent’sregistration viaourwebsite. | 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 is $10 to $180 per person per course. The royalty fee is due at the earlier of 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, provided the student fee has become non-refundable. More details regarding royalty fees can be found in Exhibit A of the Franchise Agreement.
It is important to note that the royalty rates detailed in Exhibit A of the Franchise Agreement are subject to change at Gokhale Method's discretion, with 30 days' notice. This means that while the initial royalty fee is defined, Gokhale Method retains the right to adjust this fee, which could impact a franchisee's profitability and financial planning. Franchisees should carefully review Exhibit A and consider the potential for changes in royalty fees when evaluating the franchise opportunity.
In addition to the royalty fee, Gokhale Method franchisees must also pay a billing fee of 2.5% per transaction for students who register via Gokhale Method's website. This fee is due upon the student's registration. Franchisees should factor in both the royalty fee and the billing fee when calculating the total cost of operating a Gokhale Method franchise and assessing the potential return on investment.