Does the Gokhale Method agreement allow for written approval to bypass the post-term covenants?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2.
Post-Term Covenants.
You covenant that, except as otherwise approved in writing by us, you shall not, within a 10-mile radius of your former Location or of any location then existing where the Gokhale Method is taught, and for a continuous, uninterrupted period of two (2) years following the end of our relationship with you, whether by termination, expiration or otherwise, either directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in (as owner or otherwise) any Competitive Business.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the post-term covenants can be bypassed with written approval from Gokhale Method. The agreement specifies that a franchisee is restricted from engaging in any Competitive Business within a 10-mile radius of their former location or any existing Gokhale Method location for two years after the termination or expiration of the franchise agreement.
The term "Competitive Business" is defined as a business that is substantially similar to the Gokhale Method franchise or offers similar services or products. However, this restriction can be waived if Gokhale Method provides written approval, allowing the franchisee to engage in such activities despite the standard post-term covenants.
This written approval provides flexibility for franchisees under certain circumstances, potentially allowing them to continue similar business activities without facing legal repercussions. It is important for prospective franchisees to understand the conditions under which such approval might be granted and to discuss these possibilities with Gokhale Method during their due diligence.