Does the Gokhale Method franchise agreement allow me to incur any obligation in the franchisor's name?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
8.1. Operating Standards. You understand and acknowledge that every detail of the System and the Franchised Business is important for delivering a high quality service and product, and therefore it is important to you, us, and other Gokhale Method teachers in order to develop and maintain high operating standards, to increase the demand for the services and products sold by all franchised businesses operating under the System, to protect and enhance our reputation and goodwill, to promote and protect the value of the Marks.
To those ends, you agree to comply with our operating standards as expressed in this Agreement, the Teacher's Manual, and in Policy Statements. You understand that we have the right to suspend your right to teach, or that we may terminate this Agreement, if you fail to maintain our Operating Standards. You agree that you will not teach, administer, advise or represent any method, healing regimen or protocol, or any other activity that is not part of the Gokhale System as being part of the Gokhale System or Gokhale Method unless it has previously been approved by us in writing for your use as such.
8.2. Approved Formats. You agree to sell, offer for sale and deliver to students only the Gokhale System in Approved Formats and any related classes, services and products as have been expressly approved in writing by us and for which you have been qualified; to refrain from any deviation from our standards
and specifications without our prior written consent; and to discontinue selling and offering for sale any Gokhale Method branded class, service, product, merchandise, and equipment which we may, in our discretion, disapprove in writing at any time. The current schedule of Approved Formats and requirements for them is annexed as Exhibit B.
- 8.3. Personal Involvement. You may not, under any circumstances allow other persons to teach the Gokhale System without our express, written consent.
You may not delegate, franchise or employ others to carry out the duties of this Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
The 2024 Gokhale Method Franchise Disclosure Document does not explicitly state whether a franchisee can incur obligations in the franchisor's name. However, the document does specify certain obligations and restrictions placed upon the franchisee.
Specifically, the agreement states that the franchisee must comply with Gokhale Method's operating standards, as detailed in the Franchise Agreement, Teacher's Manual, and Policy Statements. The franchisee is also required to sell the Gokhale System only in approved formats and cannot deviate from the franchisor's standards without prior written consent. Furthermore, the franchisee is not allowed to let other people teach the Gokhale System without express written consent, and they cannot delegate, franchise, or employ others to carry out the duties outlined in the Franchise Agreement.
Because the FDD does not directly address the question of incurring obligations in the franchisor's name, it would be prudent for a prospective franchisee to seek clarification from Gokhale Method regarding this matter. Understanding the scope of the franchisee's authority and limitations in this area is crucial for making an informed decision.