Are disputes related to the Gokhale Method franchise subject to mediation?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| m.Conditionsforfranchisorapproval | Section14.2 | We have the right to impose conditions on thetransfertothe |
|---|---|---|
| oftransfer | extentwehavetopermittransferunderstatelaw. | |
| n.Franchisor’srightoffirstrefusalto | None | |
| acquirefranchisee’sbusiness | ||
| o.Franchisor’soptiontopurchase | None | |
| franchisee’sbusiness | ||
| p.Deathorincompetenceof | Section14.2 | The franchise agreement cannot be transferred upondeathor |
| franchisee | incompetence. | |
| q.Non-competitioncovenantsduring thetermofthefranchise | Section17.1 | You cannot: divert or attempt to divert any present or prospective customer; employ or seek to employ any person employed by us, our affiliates, or any of our franchisees; be involvedinanyCompetitiveBusiness. |
| r.Non-competitioncovenantsafter thefranchiseisterminatedorexpires | Section17.2 | You cannot be involved for a period of two (2) years in any business that iscompetitivewithourswithina10-mileradius of your former location or of any location then existing wheretheGokhaleSystemistaught. |
| s.Modificationofagreement | Section22and Section8.10 | No amendments to the franchise agreement may be made unless the agreement allows us to unilaterally change something or unless the change is mutually agreed to by the parties and executed in writing. Also, we may change the Systemfromtimetotime. |
| t.Integration/mergerclause | Section22 | Only the terms of the franchise agreement are binding (subjecttostatelaw). |
| u.Disputeresolutionbyarbitrationor mediation | Section24 | Except for certain claims, all disputes are subject to mediation, and if mediation does not resolve a dispute, it shallberesolvedinarbitrationinPaloAlto,California. |
| v.Choiceofforum | Section24 | Arbitration must be in Palo Alto, California and any claims not subject to arbitration shall be brought only inthestateor federalcourtsforPaloAlto,California. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, dispute resolution involves mediation and arbitration. Except for certain claims, all disputes are subject to mediation. If mediation does not resolve the dispute, it will be resolved through arbitration in Palo Alto, California.
This means that if a Gokhale Method franchisee has a dispute with the franchisor, they must first attempt to resolve it through mediation. Mediation is a process where a neutral third party helps the franchisee and franchisor reach a mutually agreeable solution.
If mediation fails, the dispute will then proceed to arbitration, which is a more formal process where a neutral arbitrator hears evidence and makes a binding decision. The location for arbitration is specified as Palo Alto, California, which may involve travel costs for the franchisee depending on their location. Franchisees should consult with a legal professional to understand the implications of these dispute resolution procedures.