What was the total amount of franchise fees collected by the Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
invoice for the net royalty.
Our franchise agreements generally provide for an initial non-refundable franchise fee $4,000 per franchise for five-years term. We classify this as deferred revenue in our balance sheet and recognized over the franchise term.
The agreement also requires franchisees to pay continuing education fees including annual meeting fees, online university membership fees and teacher teleseminar fees. These fees are included in continuing education caption of the Statement of Operations.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Gokhale Method collects an initial non-refundable franchise fee of $4,000 per franchise for a five-year term. This fee is classified as deferred revenue on the balance sheet and is recognized over the franchise term.
Deferred revenue primarily comes from these initial franchise fees and any renewal fees received from franchisees for new franchise openings or terms. The recognition of this revenue is spread out over the duration of the franchise term, following accounting principles.
The FDD does not explicitly state the total amount of franchise fees collected by the Gokhale Method in 2022. Instead, it details how the initial franchise fee is $4,000 and how these fees are accounted for as deferred revenue, recognized over the franchise term. To determine the total franchise fees collected in 2022, a prospective franchisee should ask the franchisor directly for this specific financial information.
While the FDD provides information on advertising expenses for 2022 ($2,451), income tax procedures, and accounting policies, it does not disclose the aggregate amount of franchise fees collected during that year. This information would be essential for a potential franchisee to assess the financial health and revenue streams of the Gokhale Method.