Will Gokhale Method assume liability for my actions in operating the franchised business?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
The 2024 Gokhale Method Franchise Disclosure Document outlines several duties and responsibilities of the franchisee, indicating that the franchisee is generally responsible for their own actions and compliance with applicable laws. Specifically, the franchisee is expected to obtain all necessary permits and licenses for operating the franchised business and to operate in accordance with all applicable laws and regulations. This includes adhering to good business practices, maintaining high standards of honesty and integrity, and engaging in fair and ethical business conduct. The franchisee is also required to notify Gokhale Method of any legal actions or proceedings that could adversely affect the operation or financial condition of the franchised business.
Furthermore, the franchisee must comply with Gokhale Method's operating standards as detailed in the Franchise Agreement, the Teacher's Manual, and Policy Statements. This encompasses every detail of the Gokhale Method system to maintain high-quality service and protect the brand's reputation. The franchisee is responsible for ensuring that they only teach and administer approved Gokhale Method formats and do not deviate from the established standards without prior written consent. They are also prohibited from allowing other persons to teach the Gokhale System without express written consent from Gokhale Method.
Given these stipulations, it is unlikely that Gokhale Method will assume liability for a franchisee's actions in operating the franchised business, as the franchisee is expected to operate independently while adhering to the franchisor's standards and all applicable laws. A prospective franchisee should consult with a legal professional to fully understand their liability and insurance obligations when operating a Gokhale Method franchise.