Under which subchapter of the Internal Revenue Code has the Gokhale Method elected to be taxed?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
NOTE 1 – NATURE OF OPERATIONS
Gokhale Method Institute, Inc. ("GMI") was incorporated in 2011 as a California Sub-Chapter S Corporation by Gokhale Method Enterprise, Inc. ("GME"). The subsidiary was formed to franchise the Gokhale Method of dealing with back issues. GMI operates as a business and grants franchises for businesses offering classes and products that help restore the body's primal architecture and movement patterns under the "G
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method Institute, Inc. was incorporated as a California Sub-Chapter S Corporation in 2011. It is a wholly-owned subsidiary of Gokhale Method Enterprises, Inc. Because of this structure, Gokhale Method Institute, Inc. does not file taxes at the federal level. Instead, it files a consolidated return with its parent company, Gokhale Method Enterprises, Inc.
For a prospective franchisee, this means that the Gokhale Method itself is structured as a pass-through entity for tax purposes. The profits and losses of the Gokhale Method business are passed on to the parent company, Gokhale Method Enterprises, Inc., and are reported on the parent company's tax return. This structure can have implications for the overall tax liability of the parent company and its owners.
Franchisees should consult with a tax professional to understand the full implications of this structure and how it may affect their individual tax situation. It is important to consider how the tax structure of the franchisor may impact the franchisee's own tax obligations and financial planning.