Does the Gokhale Method Franchise Agreement include a personal guarantee as an exhibit?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
I received a disclosure document dated May 15, 2024, that included the following Exhibits:
A. Gokhale Method Franchise Agreement
Exhibit A – Franchise Fee Schedule and Price List
Exhibit B – Approved Formats
Exhibit C – Personal Guarantee
Exhibit D – State Amendments
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the franchise agreement does include a personal guarantee as an exhibit. Specifically, Exhibit C to the Gokhale Method Franchise Agreement is the Personal Guarantee.
This means that as a franchisee, you may be required to sign a personal guarantee, making you personally liable for the financial obligations of your Gokhale Method franchise. This is a common practice in franchising, especially for new franchisees or those operating under a corporate entity.
The franchisor, Gokhale Method Institute, Inc., requires this guarantee to ensure that all financial obligations are met. The personal guarantee is designed to protect Gokhale Method from financial losses if the franchise fails to meet its payment obligations. Prospective franchisees should carefully review the terms of the personal guarantee with a legal advisor to fully understand the extent of their personal liability.