What was the total amount of accounts receivable for Gokhale Method as of April 30, 2024?
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)
The Gokhale Method's 2024 Franchise Disclosure Document does not state the total amount of accounts receivable as of April 30, 2024. The document does provide information on how Gokhale Method accounts for accounts receivable. It states that accounts receivable primarily consist of net royalties receivable from franchisees, teachers, or class fees collected by Gokhale Method Enterprise, Inc. (GME).
The FDD explains that Gokhale Method uses the allowance method for doubtful accounts, basing the allowance on management's review of past due accounts. As of December 31, 2021, and December 31, 2022 management believed that all receivables were collectable after year end.
Because the FDD does not include the specific figure for accounts receivable as of April 30, 2024, prospective franchisees should directly ask Gokhale Method for this information. Understanding the accounts receivable balance and the collectability of those receivables would give a franchisee a better understanding of the financial health of the company.