What is the Gokhale Method franchisee's obligation regarding computer software upon termination?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon termination or expiration of this Agreement for any reason, all rights granted hereunder to you shall forthwith terminate, and:
- 16.1. Cease Operations. You shall immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as a present or former Gokhale Method Franchised Business. Immediately upon the expiration or termination hereof, you shall dispose of, and not transfer to anyone other than us, any Gokhale Method products, equipment or other items sold hereunder
- 16.2. Cease Use of Confidential Information and Marks. You shall immediately and permanently cease to use, in any manner whatsoever, any of our Intellectual Property, including but not limited to Confidential Information, methods, procedures and techniques associated with the System, and all Marks and distinctive forms, slogans, signs, symbols, colors, and devices associated with the System. In particular, you shall cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, products and any other articles that display the Marks. You shall de-identify the Location of the Franchised Business so that there is no use or display of the Marks after the effective date of termination or expiration.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must cease using Gokhale Method's intellectual property. This includes confidential information, methods, procedures, techniques, and all Marks associated with the Gokhale Method system.
Specifically, the franchisee is obligated to stop using all signs, advertising materials, displays, stationery, forms, products, and any other items that display the Marks. The franchisee must also de-identify the location of the Franchised Business to ensure there is no use or display of the Marks after the termination date.
While the franchisee must participate in any computer networks Gokhale Method adopts and may be required to execute software licenses during the term of the agreement, the FDD does not explicitly state the franchisee's obligation regarding computer software upon termination. Therefore, it is important for a prospective franchisee to seek clarification from Gokhale Method regarding any specific requirements related to software use or transfer upon termination of the franchise agreement.