Does the Gokhale Method franchisor have the option to have me assign my lease?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.4. Assignment of Lease. You shall, at our option, except in the event you continue to operate any other business you were operating from the same Location assign to us any interest which you have in any lease or sublease for the 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
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method has the option to have you assign your lease under certain conditions. Specifically, upon termination or expiration of the Franchise Agreement, Gokhale Method has the option to have you assign to them any interest you have in the lease or sublease for the business location.
However, this option is not absolute. If you continue to operate another business from the same location, Gokhale Method's option to acquire the lease does not apply. If Gokhale Method does not exercise its option to acquire the lease, you are required to modify or alter the location to distinguish it from a Gokhale Method Franchised Business. This includes changing the telephone number and removing any branding or trademarks associated with Gokhale Method.
This clause is important for prospective franchisees as it dictates what happens to the business location lease upon termination or expiration of the franchise agreement. Franchisees need to be aware that Gokhale Method has the right to take over the lease, which could impact their ability to continue operating at the same location, especially if they intend to run a different business. If Gokhale Method does not take over the lease, franchisees are responsible for removing all Gokhale Method branding and distinguishing the location from the franchise.