Does the Gokhale Method franchise agreement prohibit franchisees from disclosing confidential information during the agreement term?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
d hereunder
- 16.2. Cease Use of Confidential Information and Marks. You shall immediately and permanently cease to use, in any manner whatsoever, any of our Intellectual Property, including but not limited to Confidential Information, methods, procedures and techniques associated with the System, and all Marks and distinctive forms, slogans, signs, symbols, colors, and devices associated with the System. In particular, you shall cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, products and any other articles that display the Marks. You shall de-identify the Location of the Franchised Business so that there is no use or display of the Marks after the effective date of termination or expiration.
- 16.3. Cancellation of Registrations. You shall take such action as may be necessary to cancel any assumed name registration or equivalent registration obtained by you which contains the "Gokhale" word, or any other Marks, and you shall furnish us with evidence satisfactory to us of compliance with this obligation within five (5) days after termination or expiration of this Agreement.
- 16.4. Assignment of Lease. You shall, at our option, except in the event you continue to operate any other business you were operating from the same Location assign to us any interest which you have in any lease or sublease for the Location.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees are prohibited from disclosing confidential information during the term of the franchise agreement. Section 17.1 of the agreement states that franchisees acknowledge they will receive valuable, specialized training and confidential information, including information regarding the Gokhale Method and techniques used by Gokhale Method and the System.
Specifically, Section 16.2 requires franchisees to cease the use of any of Gokhale Method's intellectual property, including confidential information, methods, procedures, and techniques associated with the System, and all Marks and distinctive forms, slogans, signs, symbols, colors, and devices associated with the System immediately and permanently upon termination or expiration of the agreement.
Furthermore, Section 10.5 states that any failure to comply with the requirements of Section 10, which likely includes maintaining confidentiality, will cause irreparable injury to Gokhale Method. Franchisees agree to pay all court costs and reasonable attorneys' fees incurred by Gokhale Method in obtaining specific performance of, or an injunction against violation of, the requirements of Section 10, or such other relief sought by Gokhale Method.