What costs are the franchisee responsible for reimbursing Gokhale Method when they enter the Location to cure a violation?

According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are responsible for covering specific expenses incurred by Gokhale Method, its affiliates, and successors in certain situations.

Specifically, the franchisee must pay all expenses, including attorneys' fees and costs, that Gokhale Method incurs to remedy any defaults by the franchisee under the Franchise Agreement. This also applies to expenses related to enforcing Gokhale Method's rights under the agreement, effecting the termination of the agreement, and collecting any amounts due to Gokhale Method.

This means that if a franchisee violates the Franchise Agreement and Gokhale Method takes action to correct the violation, the franchisee will be responsible for reimbursing Gokhale Method for all associated costs. These costs can include legal fees, court costs, and any other expenses Gokhale Method incurs to resolve the issue. This could potentially be a significant financial burden for the franchisee, depending on the nature and extent of the violation and the actions Gokhale Method takes to address it.

Prospective franchisees should carefully review the Franchise Agreement to understand what constitutes a default and what actions Gokhale Method might take in response. It is also advisable to inquire about the types of situations that could lead to such expenses and to factor this potential financial risk into their investment decision.