What laws apply to the Gokhale Method franchise agreement, excluding covenants not to compete?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
nnection with the proposed franchise sale or grant.
If Gokhale Method Institute, Inc. does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and appropriate state agency listed in Exhibit "H". Gokhale Method Institute, Inc.'s registered agent authorized to receive service of process is Esther Gokhale, Gokhale Method Institute, Inc., 3790 El Camino Real, #1033, Palo Alto, CA 94306.
New York law requires a franchisor to provide the Franchise Disclosure Document at the earlier of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
The name, principal business address and telephone number of each franchise seller offering the franchise are:
Esther Gokhale Gokhale Method Institute, Inc. 3790 El Camino Real, #1033 Palo Alto, CA 94306
Date of Issuance: May 15, 2024
I received a disclosure document dated May 15, 2024, that included the following Exhibits:
A. Gokhale Method Franchise Agreement
Exhibit A – Franchise Fee Schedule and Price List
Exhibit B – Approved Formats
Exhibit C – Personal Guarantee
Exhibit D – State Amendments
- B. Table of Contents of Teachers' Manual
- C. Financial Statements
- D. List of Franchisees
- E. List of Franchisees who have left the system
- F. List of State Agencies
- G. State Addenda to the Disclosure Document
- H.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, several laws and regulations may affect the franchise agreement. Federal law dictates that if Gokhale Method does not deliver the Franchise Disclosure Document on time, or if it contains false statements or omissions, a violation of federal law may have occurred. This should be reported to the Federal Trade Commission. Additionally, U.S. law, including Executive Order 13224, prohibits Gokhale Method from engaging in transactions with anyone involved in terrorism.
State laws also play a role. For example, New York law requires Gokhale Method to provide the Franchise Disclosure Document at the earlier of the first personal meeting or ten business days before the franchise agreement is executed or any consideration is paid. Other states may require registration, filing, or exemption of a franchise under laws regulating business opportunities or seller-assisted marketing plans. In California, the California Franchise Investment Law and the California Franchise Relations Act provide rights to the franchisee concerning termination, transfer, or non-renewal of a franchise. If the franchise agreement contains a provision inconsistent with these laws, the law will control.
Prospective franchisees should be aware of these protections and reporting requirements. They should carefully review the Franchise Disclosure Document and all related agreements, and consult with legal counsel to understand their rights and obligations under federal and state laws. Franchisees should also be aware of the specific state addenda that may apply to their location, as these can modify the terms of the franchise agreement to comply with local laws.