What actions are prohibited regarding the Gokhale Method franchise agreement that would lead to automatic termination?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
YOUR DUTIES
8.1. Operating Standards. You understand and acknowledge that every detail of the System and the Franchised Business is important for delivering a high quality service and product, and therefore it is important to you, us, and other Gokhale Method teachers in order to develop and maintain high operating standards, to increase the demand for the services and products sold by all franchised businesses operating under the System, to protect and enhance our reputation and goodwill, to promote and protect the value of the Marks.
To those ends, you agree to comply with our operating standards as expressed in this Agreement, the Teacher's Manual, and in Policy Statements. You understand that we have the right to suspend your right to teach, or that we may terminate this Agreement, if you fail to maintain our Operating Standards. You agree that you will not teach, administer, advise or represent any method, healing regimen or protocol, or any other activity that is not part of the Gokhale System as being part of the Gokhale System or Gokhale Method unless it has previously been approved by us in writing for your use as such.
8.2. Approved Formats. You agree to sell, offer for sale and deliver to students only the Gokhale System in Approved Formats and any related classes, services and products as have been expressly approved in writing by us and for which you have been qualified; to refrain from any deviation from our standards
and specifications without our prior written consent; and to discontinue selling and offering for sale any Gokhale Method branded class, service, product, merchandise, and equipment which we may, in our discretion, disapprove in writing at any time. The current schedule of Approved Formats and requirements for them is annexed as Exhibit B.
- 8.3. Personal Involvement. You may not, under any circumstances allow other persons to teach the Gokhale System without our express, written consent. You may not delegate, franchise or employ others to carry out the duties of this Franchise Agreement.
- 8.4. Required Training. You agree to attend any and all required continuing training, as defined in 7.2.
- 8.5. Equipment and Supplies. You agree to purchase such equipment, materials, products, supplies and services as we designate and to purchase them from suppliers as we approve and designate in the Teacher Manual, Policy Statements, or otherwise in writing from time to time. You will not use any equipment, supplies or other tangible or intangible things as part of the Gokhale System or Gokhale Method unless we have previously approved it in writing for such use.
- 8.6. Computer Networks. You agree to participate in any intranet or extranet computer network or other Internet-based or computer assisted communication or teaching system we adopt or develop, and to purchase and implement such equipment or supplies as we may reasonably require. You will also execute such software licenses or other agreements as we may reasonably prescribe.
- 8.7. Permits and Licenses. You will, at your own expense, research the requirements for and obtain all permits and licenses for the Franchised Business and will then operate the Franchised Business in accordance with all applicable laws and regulations, adhere to good business practices and observe high standards of honesty, integrity, fair dealing and ethical business conduct in all dealings with customers, suppliers and us. You shall immediately notify us in writing of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of the Franchised Business.
- 8.8. Student Concerns. You agree to report to us promptly and via email any concerns or complaints from your students or former students.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, several actions are prohibited and could lead to the termination of the franchise agreement. These prohibitions are designed to protect Gokhale Method's operating standards, intellectual property, and reputation. Franchisees must adhere to the approved teaching methods and formats, and they cannot deviate from these standards without prior written consent from Gokhale Method.
A significant restriction is that franchisees cannot allow other individuals to teach the Gokhale System without express written consent from Gokhale Method. The franchisee themselves must be personally involved in carrying out the duties of the franchise agreement, and they are not allowed to delegate or franchise their responsibilities to others. Additionally, franchisees are required to attend any and all continuing training programs as defined by Gokhale Method.
Furthermore, during the term of the agreement, franchisees are prohibited from diverting customers to competitors, employing individuals already employed by Gokhale Method or its franchisees, and engaging in any competitive business. These covenants are designed to prevent franchisees from using the knowledge and training they receive from Gokhale Method to benefit competing businesses, ensuring the continued success and integrity of the Gokhale Method system. Violation of anti-terrorism laws could also lead to termination of the agreement.