Can the Gokhale Method Franchise Agreement be transferred upon the franchisee's death or incompetency?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
ay request.
- 14.2. Transfer by You. You do not have any right to transfer this agreement. It shall immediately terminate and be of no further force or effect, except for provisions that by their terms survive termination, if you attempt to transfer this Agreement. This Agreement cannot be transferred or devised upon your death or incompetency. Some states may require that we allow you to transfer this agreement in certain circumstances. If the law of any such state is determined to apply to this agreement, then we may impose requirements upon transfer, including payment of a transfer fee of $5,000 and our attorneys' fees and the prior qualification of the transferee to teach the Gok
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the Franchise Agreement cannot be transferred or devised upon the franchisee's death or incompetency. However, the FDD notes that some states may require Gokhale Method to allow the franchisee to transfer the agreement in certain circumstances.
If the law of any such state is determined to apply to the agreement, Gokhale Method may impose requirements upon transfer. These requirements include payment of a transfer fee of $5,000, as well as the franchisor's attorneys' fees. Additionally, the transferee must be qualified to teach the Gokhale System prior to the transfer.
Prospective franchisees should be aware of these restrictions on transferability, as they could impact the value of the franchise as an asset. It is important to understand the laws in your specific state regarding franchise transfers and to discuss any concerns with Gokhale Method before signing the Franchise Agreement.