What happens if a Gokhale Method franchisee violates the terms of the franchise agreement?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.2. Conditions and Suspension. You recognize and agree that the right granted to you to teach the Gokhale System is limited by the terms of this Agreement, and that if you violate any term of this Agreement or the Policies under it, we have the right to terminate it pursuant to Article 15 of this Agreement. You recognize and agree that because of our concern for quality and uniformity throughout the System and because we will bring you improvements and innovations in teaching the Gokhale System, that we have the right to suspend your license to teach if you are not current on our requirements for teachers or are not otherwise in good standing. The requirements to maintain qualification and to be in good standing are or will be included in our Teacher's Manual and/or Policy Statements.
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.
- 16.9.
Websites and Email.
You shall cease use of any of our domain name, URL, email address or home page address, or any such name or address that is confusingly similar to one of ours, and shall not establish any Website using any similar or confusing domain name, URL, and/or home page address.
- 16.10.
Our Option to Purchase Equipment.
We shall have the option, at our sole discretion, to be exercised within thirty (30) days after termination or expiration, to purchase from you any or all of the equipment, signs, inventory, materials, supplies and fixtures related to the operation of the Franchised Business at fair market value or at sixty percent (60%) of your original investment, whichever is less. if the parties cannot agree within such time on the price of any such items, an independent appraisal
16.11. Compliance With Covenants. You shall comply with the covenants contained in Section 17 of this Agreement.
17. COVENANTS
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are granted the right to teach the Gokhale System under specific terms and conditions. If a franchisee violates any of these terms or the associated policies, Gokhale Method has the right to terminate the franchise agreement, as detailed in Article 15. Furthermore, Gokhale Method can suspend a franchisee's license to teach if they do not meet the current requirements for teachers or are not in good standing, as determined by the Teacher's Manual and Policy Statements.
Upon termination or expiration of the franchise agreement, the franchisee's rights to operate the Gokhale Method business cease immediately. The franchisee must stop representing themselves as a current or former Gokhale Method franchisee. They must also discontinue using any of Gokhale Method's intellectual property, including confidential information, teaching methods, trademarks, slogans, and advertising materials. The franchisee is obligated to remove all branding from their business location to distinguish it from a Gokhale Method franchise.
Additionally, the franchisee must cancel any assumed name registrations that include the word "Gokhale" or any other Gokhale Method trademarks. At Gokhale Method's option, the franchisee may be required to assign their lease for the business location to Gokhale Method. The franchisee is also prohibited from using any Gokhale Method domain names, URLs, or email addresses. Gokhale Method has the option to purchase the franchisee's equipment, signs, inventory, and materials at fair market value or 60% of the original investment, whichever is less. The franchisee must also comply with the non-compete covenants outlined in Section 17 of the agreement, which restrict their ability to engage in competitive businesses during and after the term of the franchise agreement.