What is the royalty fee for Gokhale Method franchises?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Accounts receivable is primarily comprised of net royalties' receivables from franchise, teachers or class fees collected by GME.
The Company utilizes the allowance method of accounting for doubtful accounts. The allowance is based on management's review of all past due accounts. As of December 31, 2021 and 2020, management believes that all receivables are collectable after year end.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document does not explicitly state the royalty fee for a Gokhale Method franchise. However, it does mention that accounts receivable is primarily comprised of net royalty receivables from franchises, teachers, or class fees collected by GME. Additionally, the document mentions that franchisees may owe fees or other payments for continuing education or for products or equipment purchased from Gokhale Method.
Exhibit A to the Gokhale Method Franchise Agreement includes the Franchise Fee Schedule and Price List, which would likely contain information regarding royalty fees. The document also mentions that the Billing Fee Schedule is included in Exhibit A and is subject to change with thirty days' notice.
To fully understand the royalty fee structure, a prospective franchisee should carefully review Exhibit A of the Franchise Agreement and ask Gokhale Method for a detailed explanation of all applicable fees, including the royalty fee, how it is calculated, and when it is due. Understanding these fees is crucial for assessing the financial viability of the franchise.