How are royalty fees collected for GMI-Pay Students in the 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 GMI-Pay Students are collected directly by Gokhale Method Institute (GMI) from the student payments. When a student pays through the GMI payment system, GMI will deduct the royalty fee, billing fee, and any other amounts owed by the franchisee.
After these deductions, GMI remits the remaining balance to the franchisee according to their payment schedule. The specific schedules for fees and royalties are detailed in Exhibit A of the Franchise Agreement and are subject to change at GMI's discretion, with a 30-day notice provided to the franchisee.
In addition to royalty fees, franchisees are also responsible for billing fees for GMI-Pay Students, as outlined in the Billing Fee Schedule, which is also included in Exhibit A and subject to change with 30 days' notice. This system ensures that GMI directly collects its fees from student payments before disbursing the remaining funds to the franchisee, streamlining the payment process and ensuring consistent royalty collection.