Does the Gokhale Method franchisor have a right of first refusal to acquire the franchisee’s business?

According to the 2024 Gokhale Method Franchise Disclosure Document, the franchisor does not appear to have a right of first refusal to acquire a franchisee's business. The FDD outlines various provisions related to the franchise agreement, including termination conditions, transfer rights, and obligations upon termination or non-renewal.

However, under the section summarizing key provisions of the franchise agreement, it is explicitly stated that there is "None" specified for the franchisor's right of first refusal to acquire the franchisee’s business. Similarly, there is "None" specified for the franchisor's option to purchase the franchisee’s business. This suggests that Gokhale Method does not have a contractual right to step in and purchase the franchise if the franchisee decides to sell.

Prospective franchisees should note that while Gokhale Method does not have a right of first refusal or an option to purchase the business, franchisees have no right to transfer the franchise. If applicable law requires that Gokhale Method allow a franchisee to transfer the franchise agreement, Gokhale Method has the right to impose requirements upon the transfer, including requiring a payment of a transfer fee of $5,000 and their attorneys’ fees.