What is the Gokhale Method franchisee's obligation regarding the use of Marks designated by the franchisor?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.2. The license of the Marks granted to you is not exclusive, and we retain the rights, among others: (a) to use the Marks ourselves in connection with selling products, merchandise, and services; (b) to grant other licenses for the Marks; (c) to develop and establish other systems using the Marks, similar Marks, or any other Marks; and (d) to grant licenses thereto without providing any rights therein to you.
- 9.3.3. We reserve the right, in our sole discretion, to modify, add to, or discontinue use of the Marks, or to substitute different Marks, for use in identifying the System and the businesses operating thereunder. You agree that if we change the Marks that you will comply with any changes we require you to make at your expense.
16. OBLIGATIONS UPON TERMINATION OR EXPIRATION
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.
- 16.3. Cancellation of Registrations. You shall take such action as may be necessary to cancel any assumed name registration or equivalent registration obtained by you which contains the "Gokhale" word, or any other Marks, and you shall furnish us with evidence satisfactory to us of compliance with this obligation within five (5) days after termination or expiration of this Agreement.
- 8.1. Operating Standards. You understand and acknowledge that every detail of the System and the Franchised Business is important for delivering a high quality service and product, and therefore it is important to you, us, and other Gokhale Method teachers in order to develop and maintain high operating standards, to increase the demand for the services and products sold by all franchised businesses operating under the System, to protect and enhance our reputation and goodwill, to promote and protect the value of the Marks.
To those ends, you agree to comply with our operating standards as expressed in this Agreement, the Teacher's Manual, and in Policy Statements.
- 8.2. Approved Formats. You agree to sell, offer for sale and deliver to students only the Gokhale System in Approved Formats and any related classes, services and products as have been expressly approved in writing by us and for which you have been qualified; to refrain from any deviation from our standards
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method FDD, franchisees have specific obligations regarding the use of the brand's Marks, both during the franchise agreement and after termination or expiration. During the term of the agreement, franchisees must adhere to Gokhale Method's operating standards to maintain the quality, reputation, and goodwill associated with the Marks. This includes using only approved formats for classes, services, and products, and refraining from any deviations without prior written consent from Gokhale Method. Franchisees must also use designated equipment, materials, and supplies approved by Gokhale Method. Gokhale Method retains the right to modify, add to, or discontinue the use of Marks, and franchisees are obligated to comply with any changes at their own expense.
Upon termination or expiration of the franchise agreement, the franchisee must immediately cease all use of Gokhale Method's intellectual property, including Marks, and de-identify the location of the franchised business to remove any display of the Marks. The franchisee is also required to cancel any assumed name registrations containing the word "Gokhale" or any other Marks. Furthermore, franchisees are prohibited from using any reproduction, counterfeit, copy, or imitation of the Marks in any subsequent business they operate, if such use is likely to cause confusion or dilute Gokhale Method's rights to the Marks.
These stipulations are typical in franchising to protect the brand's identity and prevent confusion among consumers. Gokhale Method's control over the use of its Marks ensures consistency and quality across all franchised locations, safeguarding the brand's reputation. Prospective franchisees should understand these obligations and the potential costs associated with rebranding or ceasing operations that use the Marks upon termination or expiration of the agreement.