What is the consequence of violating the Cartwright Act with a maximum price agreement for a Gokhale Method franchise in California?

According to the 2024 Gokhale Method Franchise Disclosure Document, the Antitrust Law Section of the Office of the California Attorney General considers maximum price agreements as per se violations of the Cartwright Act. This means that any agreement between Gokhale Method and its franchisees that sets a maximum price for goods or services is automatically considered a violation of California's antitrust law.

For a prospective Gokhale Method franchisee in California, this has significant implications. The franchisee must avoid entering into any agreement, formal or informal, that fixes the maximum price at which they can sell Gokhale Method classes, services, or products. Doing so could lead to legal action by the California Attorney General's Office.

Violating the Cartwright Act can result in substantial penalties, including fines and potential lawsuits. Franchisees should seek legal counsel to ensure full compliance with California's antitrust laws and to understand their rights and obligations regarding pricing. This also means that Gokhale Method cannot enforce any maximum pricing policy within California, and any attempt to do so would be a violation of state law.