Does a Gokhale Method franchisee acquire rights to the underlying intellectual property when reselling patented products?

According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees do not acquire rights to the underlying intellectual property when reselling patented products. The franchisee is granted the right to offer and sell services and products under the Gokhale Method name, but this does not extend to ownership of the intellectual property itself.

The FDD specifies that Gokhale Method retains all rights to the Marks, the System, and the Gokhale Method businesses, including the rights outlined in Section 2.2 of the Franchise Agreement, without providing any compensation to the franchisee. This means that while franchisees can sell approved products, they do not gain any ownership or rights to the underlying intellectual property associated with those products.

Upon termination or expiration of the Franchise Agreement, the franchisee must cease using all of Gokhale Method's intellectual property, including confidential information, methods, procedures, techniques, and all Marks. They must also dispose of any Gokhale Method products, equipment, or other items, and not transfer them to anyone other than Gokhale Method. This underscores that the franchisee's rights to sell products are contingent upon the Franchise Agreement and do not confer any lasting rights to the intellectual property.

Gokhale Method also retains the right to modify, add to, or discontinue the use of the Marks, or substitute different Marks, for use in identifying the System and the businesses operating under it. Franchisees must comply with any changes Gokhale Method requires them to make at their own expense. This further illustrates that franchisees do not have any ownership or control over the intellectual property associated with the Gokhale Method brand and products.