What is the Gokhale Method franchisee's obligation regarding the expense of changes made by Gokhale Method to the location after termination?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
e Location. In the event we do not elect to exercise our option to acquire the lease or sublease for the Location, you shall make such modifications or alterations to the Location (including, without limitation, the changing of, and the assigning to us of, the telephone number) immediately upon termination or expiration of this Agreement as may be necessary to distinguish the appearance of the Location from that of the Franchised Business under the System, and shall make
such specific additional changes thereto as we may reasonably request for that purpose. In the event you fail or refuse to comply with the requirements of this Section 16.4, we shall have the right to enter upon the Location, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required, at the expense of you, which expense you agree to pay upon demand.
- 16.5.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, a franchisee is responsible for the expenses incurred if they fail to make required changes to their location after termination or expiration of the franchise agreement.
Specifically, after the agreement ends, the franchisee must modify the location to differentiate it from a Gokhale Method Franchised Business. This includes changes like altering the appearance and assigning the telephone number to Gokhale Method. The franchisor can also request additional specific changes for this purpose.
If the franchisee does not comply with these requirements, Gokhale Method has the right to enter the location and make the necessary changes themselves. The franchisee is then obligated to pay for these changes upon demand. This could involve considerable and unexpected expenses after the termination of the franchise agreement.