What were the total franchise fees recognized by the Gokhale Method as of December 31, 2021?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
regated revenue are as follows:
| December 31, 2021 | December 31, 2020 | |
|---|---|---|
| Revenue recognition | ||
| Franchise fees | $ 25,998 | $ 25,576 |
| Royalty | 28,918 | 42,599 |
| Other | 13,480 | 7.670 |
| Total | $ |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the franchise fees recognized as revenue as of December 31, 2021, were $25,998. This figure represents the amount of initial and renewal franchise fees that Gokhale Method recognized as revenue during that year. These fees are initially recorded as deferred revenue and are recognized over the term of the franchise agreement.
In addition to franchise fees, Gokhale Method also recognized revenue from royalties and other sources. Royalty revenue for the same period was $28,918, and revenue from other sources totaled $13,480. The total revenue recognized by Gokhale Method as of December 31, 2021, was $68,396, which includes franchise fees, royalties, and other income.
Prospective franchisees should note that the initial franchise fee for Gokhale Method is $4,000 per franchise for a five-year term. This fee is non-refundable and is classified as deferred revenue on the balance sheet, being recognized over the franchise term. Understanding how franchise fees are recognized as revenue is important for assessing the financial performance and stability of the Gokhale Method franchise system.