Does the Gokhale Method agreement specify what happens if the franchisee violates the in-term covenants?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Included in our Confidential Information are the Teachers' Manual; teaching scripts and Policy Statements; the information, know-how and techniques that we have imparted to you; proprietary software; and any other information we have provided to you that is not available to the general public.
10.4. Changes and Revisions. We may from time to time revise the contents of the Teachers' Manual, Policy Statements, scripts and any other teaching methods or content, and you expressly agree to comply with each new or changed standard.
10.5. Irreparable injury. You acknowledge that any failure to comply with the requirements of this Section 10 will cause us irreparable injury, and you agree to pay all court costs and reasonable attorneys' fees incurred by us in obtaining specific performance of, or an injunction against violation of, the requirements of this Section 10, or such other relief sought by us.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
The 2024 Gokhale Method Franchise Disclosure Document (FDD) specifies certain in-term covenants that franchisees must adhere to during the term of the agreement. These covenants include not diverting customers to competitors, not employing or soliciting employees of Gokhale Method or its franchisees, and not engaging in any competitive business.
While the FDD excerpts provided do not explicitly detail the specific consequences of violating these in-term covenants, Section 10.5 addresses the failure to comply with the requirements regarding Confidential Information. It states that any failure to comply with the requirements of Section 10 will cause Gokhale Method irreparable injury, and the franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Gokhale Method in obtaining specific performance of, or an injunction against violation of, the requirements of this Section 10, or such other relief sought by Gokhale Method.
Prospective franchisees should carefully review the full franchise agreement and consult with legal counsel to understand the complete scope of in-term covenants and the potential ramifications of any violations, as the excerpts provided do not offer a comprehensive overview. It is important to clarify what specific actions Gokhale Method may take if a franchisee breaches these covenants, such as potential termination of the agreement or other financial penalties.