Is the Gokhale Method franchise offered to entities other than natural persons under any circumstances?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
To simplify the language in this Franchise Disclosure Document, unless the context otherwise requires, all references to "we," "us", or "our" refer to Gokhale Method Institute, Inc., and all references to "Franchisee," "you," or "your" refer to the person who is offered or granted the right to operate a Gokhale Method franchise under a Franchise Agreement. The franchise is referred to here as the "Franchised Business" or the "Franchise." We offer the Franchise only to natural persons, although you may form a legal entity to carry on the business aspects of the Franchised Business. The use of paragraph captions throughout this document is for convenience of reference only and is not intended to change the meaning of any text.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–10)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the franchise is offered only to natural persons. However, the document states that a franchisee may form a legal entity to manage the business aspects of the Franchised Business.
This means that while the actual franchise agreement will be with an individual, that individual can then create a corporation or LLC to handle the financial and operational components of the Gokhale Method franchise. This is a fairly common practice in franchising, as it can provide certain legal and tax benefits to the franchisee.
It is important to note that Gokhale Method retains the right to approve the individual who will be teaching the Gokhale Method. The franchise is not transferable because of the highly individualized nature of the teaching. Therefore, even if a legal entity is formed, the individual instructor must meet Gokhale Method's training and qualification standards.