Gokhale Method Institute logo

Gokhale Method Institute Franchise

Audited Financials
WellnessEst. 2011Palo Alto, CA
www.gokhalemethod.com

Risk Score

Pending analysis

Investment Range

$8,531 - $23,422

Franchise Fee

$4,000

Total US Locations

20

Business Summary

Gokhale Method Institute operates a business and grants franchises for businesses offering classes and products that help restore the body's primal architecture and movement patterns under the "Gokhale Method" trademark and related marks. The business focuses on teaching posture for back pain relief through structured courses and consultations, as well as selling related products.

Corporate History

Gokhale Method Institute, Inc. was formed under California law on November 3, 2011. Its founder and president, Esther Gokhale, has a long history, teaching yoga and posture since at least 1980. She began teaching classes specifically for posture and back pain in 1992 and was certified to teach Aplomb in 1993. Beginning in approximately 1996, Ms. Gokhale researched and developed the distinctive Gokhale Method, which was trademarked in 2010. In April 2008, she published her book "8 Steps to a Pain Free Back." From 2009 to February 2011, Ms. Gokhale offered "Affiliate Program Agreements" that allowed individuals to teach the Gokhale Method for a fee, which might have been considered franchises. In 2012, Gokhale Method Institute offered these existing affiliates the option to convert to the current franchise model or end their relationship, with all affiliate agreements now concluded or converted. The company's sole business is now the offer and sale of franchises under the Gokhale Method.

Financial Overview

Investment Range

$8,531 - $23,422

Franchise Fee (Low)

$4,000

Franchise Fee (High)

$4,000

Equipment Costs (Low)

$2,486

Equipment Costs (High)

$9,292

Working Capital

$1,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Gokhale Method Institute's financial statements are audited by an independent auditor and have received an unqualified opinion for the fiscal years ending December 31, 2021, 2022, and 2023. An unqualified opinion indicates that the financial statements present fairly, in all material respects, the company's financial position and results of operations in accordance with generally accepted accounting principles. The auditors' report mentions their responsibility to evaluate conditions that could raise substantial doubt about the company's ability to continue as a going concern, but no such doubt or qualification is expressed in their opinion, suggesting a stable financial position. There are no specific financial health notes or concerns highlighted in Item 21 beyond the standard audit opinion.

Financing Details

Gokhale Method Institute does not offer any direct or indirect financing to its franchisees. This means that Gokhale Method Institute will not finance any portion of the initial investment, equipment, or other obligations, nor will it guarantee any notes or leases for franchisees. Franchisees are responsible for securing all necessary funding through third-party lenders.

Performance Metrics

Total US Locations

20

Franchised Units

20

Corporate Units

0

Franchising Since

2012

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, Gokhale Method Institute franchisees must provide written notice of their election to renew between three and twelve months before the current term ends. They may also be required to execute a general release in favor of Gokhale Method Institute and sign a new form of franchise agreement, which could include different terms and fees.

Training & Support Program

Franchisor Assistance

Gokhale Method Institute provides initial training which includes a Teacher Training Immersion Week held at its headquarters in Palo Alto, California, or other designated locations, followed by substantial self-study, webinars, and practice requirements. After opening, Gokhale Method Institute offers ongoing advice on the Gokhale System, provides continuing training through bimonthly teacher webinars and an annual meeting. It also maintains a website where classes can be posted, students can register and pay, and student records are kept. Gokhale Method Institute offers advertising materials (at franchisee expense) and pays referral fees for new teachers. Additionally, Gokhale Method Institute sets the prices that franchisees must charge for classes and products.

Initial Training Hours

295

Training Location

Palo Alto, California, or other designated locations

Ongoing Support

After opening, Gokhale Method Institute provides ongoing support through continuing training programs, including bimonthly Teacher Webinars and an Annual Meeting (or an approved alternative continuing education program), which are mandatory for maintaining teaching qualification. Franchisees also receive ongoing advice on operating their business, discretion to inspect the franchised business, and access to a website for class postings, student registration, and billing. Gokhale Method Institute also operates a database for student records and provides advertising materials (at franchisee expense).

Franchise Requirements

Ideal Candidate Profile

Gokhale Method Institute offers franchises to natural persons, although they may form a legal entity, who are personally committed to managing and operating the business and teaching the Gokhale Method. Candidates must be willing to complete extensive initial and ongoing training to the franchisor's satisfaction, including memorization and recitation of scripts, and continuous participation in refresher courses and annual meetings. They must also diligently promote the business, exert best efforts, and not engage in conflicting activities. However, Gokhale Method franchisees are permitted to engage in other businesses or activities, provided they do not commingle them with any Gokhale Method activities or methodologies. The franchisor expects a deep, hands-on involvement from the franchisee in the day-to-day teaching and operation.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Mobile

Owner Participation

Hands-On

Territory Type

Non-Exclusive

0

Territory Size Requirements

Gokhale Method Institute does not grant a territory, whether exclusive or non-exclusive, in connection with the franchise. Gokhale Method franchisees may teach in different locations, renting space on an hourly, daily, weekly, or monthly basis, rather than operating from a fixed business site. While the franchisor reserves the right to approve the general geographic area, such as a city or county, in which a franchisee operates and markets, and can limit teaching to a specific country, no specific size or boundaries are defined for these operating areas. Franchisees will not receive an exclusive territory and may face competition from other Gokhale Method franchisees or company-owned outlets in their geographic area.