If Gokhale Method incurs costs in a proceeding involving me, am I required to reimburse them?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 24.7.
Our Costs and Expenses.
Except as expressly provided by Section 24.3 hereof, you shall pay all expenses, including attorneys' fees and costs, incurred by us, our Affiliates, and our successors and
- assigns (a) to remedy any of your defaults of, or enforce any of our rights under, this Agreement; (b) to effect termination of this Agreement; and (c) to collect any amounts due under this Agreement.
- 24.8. WAIVER OF RIGHT TO A JURY AND PUNITIVE DAMAGES. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY AGREE AS FOLLOWS:
- 24.8.1. THE PARTIES BOTH EXPRESSLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY OR AGAINST EITHER PARTY; AND
- 24.8.2. THE PARTIES BOTH EXPRESSLY WAIVE ANY CLAIM FOR PUNITIVE, MULTIPLE, AND/OR EXEMPLARY DAMAGES.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees are responsible for covering Gokhale Method's expenses, including attorney's fees and costs, under specific circumstances.
Specifically, if a franchisee defaults on the franchise agreement, they are obligated to pay all expenses incurred by Gokhale Method, its affiliates, and successors to remedy the default, enforce their rights under the agreement, effect termination of the agreement, or collect any amounts due. This includes reasonable attorneys' fees. This obligation creates a lien in Gokhale Method's favor against the franchisee's personal property, furnishings, equipment, signs, fixtures, and inventory at the franchise location until all dues are paid.
This means that if Gokhale Method has to take legal action against a franchisee due to a breach of contract, the franchisee will be responsible for covering Gokhale Method's legal costs. This could potentially include expenses related to court proceedings, attorney consultations, and other related costs. Franchisees should be aware of this potential financial burden and ensure they fully understand their obligations under the franchise agreement to avoid default and the associated costs.