Is a Gokhale Method franchisee required to make expenditures for advertising and brand promotion?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
5.8. Advertising Expenditures and Contributions. You shall make expenditures and contributions for advertising and brand promotion as specified in Section 12 hereof.
8.9.
Advertising and Promotion.
You shall advertise and promote the Franchised Business and the Gokhale System in the manner and through the means that we require in this Agreement, the Teachers' Manual and in Policy Statements, which advertising and promotion shall be at your expense.
You will ensure that all graphics, signs, advertising and promotional materials, decorations and other items specified by us bear the Marks in the form, color, location, and manner prescribed by us and in no other way.
- 12.1. Local Marketing, Advertising, and Promotion Expenditure. You shall follow the guidelines in the Teachers' Manual and Policy Statements regarding marketing, advertising and promotion and upon our request, you shall provide satisfactory evidence of all Local Marketing, Advertising and Promotion Expenditures in such manner as we shall direct. Such guidelines may include, but are not limited to offering free promotional classes. You shall bear the cost of all such activities. You also agree to pay us for any advertising materials that we create for you and at your request, including the costs of creating such materials and reproducing them.
- 12.2. Advertising Materials. All advertising and promotion by you shall be in such media and of such type and format as we may approve, shall be conducted in a dignified manner and shall conform to such standards and requirements as we may specify. You shall not use any advertising or promotional plans or materials relating to the Gokhale Method unless and until you have received written approval from us. You acknowledge and agree that we may require, in our sole business judgment, that in all advertising relating to the Gokhale Method that you use must designate only our designated Website, our designated email address and your phone number for contacting you.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees are required to make expenditures and contributions for advertising and brand promotion as specified in Section 12 of the franchise agreement. Franchisees must advertise and promote the Gokhale Method business in the manner and through the means required by Gokhale Method in the Franchise Agreement, the Teacher's Manual, and Policy Statements. These advertising and promotion activities are at the franchisee's expense.
Franchisees must follow guidelines in the Teacher's Manual and Policy Statements regarding marketing, advertising, and promotion. Upon request, franchisees must provide satisfactory evidence of all local marketing, advertising, and promotion expenditures. These guidelines may include offering free promotional classes, and the franchisee bears the cost of all such activities. Franchisees also agree to pay Gokhale Method for any advertising materials that Gokhale Method creates for them at their request, including the costs of creating and reproducing such materials.
All advertising and promotion by the franchisee must be in a media type and format approved by Gokhale Method, conducted in a dignified manner, and conform to specified standards and requirements. Franchisees cannot use any advertising or promotional plans or materials relating to the Gokhale Method unless they have received written approval from Gokhale Method. Gokhale Method may require that all advertising designate only their designated website, email address, and the franchisee's phone number for contact.