What is the definition of 'Wholesale Groups' in the Gokhale Method franchise agreement?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.1. Grant of Franchise. We grant to you the right to teach the Gokhale System in the manner and to the categories of students we authorize ("Approved Formats") in accordance with the terms and conditions set forth in this Agreement. This Grant of Franchise is to teach the Gokhale System only to individual students, or to groups of students that were solicited individually ("Consumer Students"). No License is hereby granted to any other types of students, including, but not limited to, groups of students organized by companies or organizations ("Corporate Groups") or students with no prior affiliation aggregated together by a third party that is not you ("Wholesale Groups").
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, a Gokhale Method franchisee is granted the right to teach the Gokhale System to individual students or groups of students solicited individually, termed "Consumer Students".
The franchise agreement explicitly excludes the franchisee from teaching other types of student groups. These include "Corporate Groups," defined as groups of students organized by companies or organizations, and "Wholesale Groups," defined as students with no prior affiliation aggregated together by a third party that is not the franchisee.
This distinction is important for prospective franchisees as it clarifies the permitted scope of their teaching activities. Franchisees are restricted from teaching groups of students brought together by external entities, focusing their efforts on individual students or those they personally solicit. This limitation could impact a franchisee's potential revenue streams and marketing strategies, as they cannot rely on partnerships with third-party organizations to generate student groups.