Does the Gokhale Method agreement define 'Affiliates'?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.1.2.
Employ or seek to employ any person who is at that time employed by us, our Affiliates, or by any of our other franchisees, or otherwise directly or indirectly induce such person to leave his or her employment; or
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Gokhale Method franchise agreement does not explicitly define the term "Affiliates." However, the term is used within the context of in-term covenants, specifically regarding employment restrictions.
The franchise agreement states that during the term of the agreement, franchisees are prohibited from employing or seeking to employ anyone currently employed by Gokhale Method, its Affiliates, or other franchisees. They are also restricted from inducing such individuals to leave their employment. This suggests that the actions of "Affiliates" are considered relevant to the franchisee's operations and competitive activities.
While the term "Affiliates" is used, the absence of a clear definition in the agreement could create ambiguity. A prospective franchisee should seek clarification from Gokhale Method regarding the scope and meaning of "Affiliates" to fully understand the restrictions and obligations related to this term. Understanding who is considered an affiliate is crucial for compliance with the in-term covenants and to avoid potential disputes with the franchisor.