What is the consequence for a Gokhale Method franchisee if they make unauthorized use of the Marks?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
pon demand.
- 16.5. Subsequent Use of Marks Prohibited. You agree, in the event you continue to operate or subsequently begin to operate any other business, not to use any reproduction, counterfeit, copy or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, which, in our sole business judgment, is likely to cause confusion, mistake or deception, or which, in our sole business judgment, is likely to dilute our rights in and to the Marks. You further agree not to utilize any designation of origin, description or representation (including but not limited to reference to Gokhale Method Institute, the System or the Marks) which, in our sole business judgment, suggests or represents a present or former association or connection with us, the System or the Marks.
- 16.6. Payment. You shall promptly pay all sums owing to us and our Affiliates. In the event of termination due to your default, such sums shall include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by us as a result of the default, which obligation shall give rise to and remain, until paid in full, a lien in our favor against any and all of the personal property, furnishings, equipment, signs, fixtures, and inventory owned by you and at the Location operated hereunder at the time of default.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, if a franchisee continues to operate any other business after termination or expiration of the franchise agreement, they are prohibited from using any reproduction, counterfeit, copy, or colorable imitation of the Marks. This applies to both the operation of the other business and its promotion. Gokhale Method retains sole business judgment in determining what constitutes a likely cause of confusion, mistake, or deception, or what is likely to dilute their rights to the Marks.
Furthermore, franchisees are not allowed to use any designation of origin, description, or representation that suggests a present or former association with Gokhale Method, the System, or the Marks. This includes references to Gokhale Method Institute, the System, or the Marks themselves.
Should a franchisee fail or refuse to comply with these requirements, Gokhale Method has the right to enter the Location to make necessary changes to ensure compliance, and the franchisee will be responsible for covering these expenses. This provision ensures that upon termination or while operating other businesses, franchisees do not mislead the public into believing there is still an affiliation with Gokhale Method, thereby protecting the brand's integrity and reputation.