Can a Gokhale Method franchisee operate another business that conflicts with their obligations under the Franchise Agreement?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Franchise Agreement, you must personally manage and operate the business and only you may teach classes in the Gokhale Method. You must at all times faithfully, honestly and diligently perform your obligations under the agreements, continuously exert your best efforts to promote and enhance the Business and not engage in any other business or activity that conflicts with your obligations to operate the Franchised Business in compliance with the Franchise Agreement. You may engage in other businesses or activities, but may not comingle them with any Gokhale Method activities or methodologies.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 26)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, a franchisee must personally manage and operate the business and can only teach classes in the Gokhale Method themselves. Franchisees must diligently perform their obligations under the agreements and continuously exert their best efforts to promote and enhance the Gokhale Method business.
The FDD states that franchisees cannot engage in any other business or activity that conflicts with their obligations to operate the franchised business in compliance with the Franchise Agreement. However, franchisees may engage in other businesses or activities as long as they do not comingle them with any Gokhale Method activities or methodologies.
In essence, while Gokhale Method allows franchisees to have other business ventures, these must not interfere with their commitment to the franchise or create any conflict of interest. This ensures that the franchisee's primary focus remains on growing the Gokhale Method business and upholding its standards, while also allowing for other personal or professional pursuits that do not overlap or detract from the franchise operations.