What was the total amount of accounts receivable for Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Accounts receivable is primarily comprised of net royalty 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, 2022, management believes that all receivables are collectable after year end.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the financial statements of Gokhale Method Institute, Inc. as of December 31, 2022, were audited. The document indicates that the management believed all receivables were collectable after year end. The accounts receivable primarily consist of net royalty receivables from franchisees, teachers, or class fees collected by GME (Gokhale Method Enterprise, Inc.).
However, the 2024 FDD does not specify the exact total dollar amount of accounts receivable for Gokhale Method as of December 31, 2022, or December 31, 2023. Instead, it states that management believed all receivables were collectable after year end for both 2022 and 2021.
A prospective franchisee should request detailed financial statements from Gokhale Method to ascertain the specific amount of accounts receivable for the stated periods. This information is crucial for assessing the financial health and stability of the company.