Does the Gokhale Method agreement specify that the post-term covenant applies to any location where the Gokhale Method is taught?
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.
A "Competitive Business" is a business that: is the same as, or substantially similar to, the Franchised Business; or that offers to sell or sells any services, equipment, products or other items which are the same as, or substantially similar to, any of the services, equipment, products or other items offered by us or our franchisees or Affiliates.
If you do not immediately comply with this paragraph upon the end of our relationship, the two-year period referred to above will commence when you begin compliance.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the post-term covenant restricts a franchisee from engaging in competitive business within a specific radius of their former location or any existing location where the Gokhale Method is taught.
Specifically, the agreement states that for two years after the franchise relationship ends, a franchisee cannot own, operate, or be involved in any competitive business within a 10-mile radius of their former location or any location where the Gokhale Method is currently being taught. A "Competitive Business" is defined as one that is substantially similar to the Gokhale Method franchise or offers similar services or products.
This restriction is significant for potential franchisees as it limits their ability to operate a similar business after the franchise agreement terminates, and the restriction applies not only to their former location but also to any other location where Gokhale Method is taught. However, if the franchisee does not immediately comply with this paragraph upon the end of their relationship, the two-year period will commence when they begin compliance.