What is the royalty fee for a Gokhale Method franchise, and where can I find more details about it in the Franchise Agreement?
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. |
Notes:
- The royalty payable is set forth on Exhibit A to the Franchise Agreement. See Exhibit A to the Franchise Agreement for full details. The royalty rates set forth on Exhibit A to the Franchise Agreement are subject to change at Franchisor's discretion, upon 30 days' notice.
You must pay an additional billing fee of 2.5 percent for students who are processed through our billing facility.
All fees are subject to change at our discretion.
None of the fees listed above is refundable
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 ranges from $10 to $180 per person per course. The exact amount depends on the specifics outlined in Exhibit A of the Franchise Agreement. The royalty fee is due either when Gokhale Method collects the course fee from the customer or within 5 business days after the franchisee collects the fee, provided the student fee has become non-refundable.
Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to understand the specific royalty rates that will apply to their Gokhale Method franchise. It's important to note that these royalty rates are subject to change at Gokhale Method's discretion, with 30 days' notice. This means that the royalty fees could increase over time, impacting the franchisee's profitability.
In addition to the royalty fee, franchisees must also pay a billing fee of 2.5 percent for students who are processed through Gokhale Method's billing facility. This fee is due upon the student's registration via the Gokhale Method website. Franchisees should factor in both the royalty fee and the billing fee when calculating their costs and potential revenue. Understanding these fees is crucial for assessing the financial viability of a Gokhale Method franchise.
It is also important to note that all fees, including the royalty fee, are subject to change at Gokhale Method's discretion. None of the fees listed in Item 6 of the FDD are refundable. This highlights the importance of carefully considering the financial implications of these fees before investing in a Gokhale Method franchise.