Is Gokhale Method liable for my actions or omissions in operating the franchised business?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
prescribe.
- 8.7. Permits and Licenses. You will, at your own expense, research the requirements for and obtain all permits and licenses for the Franchised Business and will then operate the Franchised Business in accordance with all applicable laws and regulations, adhere to good business practices and observe high standards of honesty, integrity, fair dealing and ethical business conduct in all dealings with customers, suppliers and us. You shall immediately notify us in writing of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of the Franchised Business.
- 8.8. Student Concerns. You agree to report to us promptly and via email any concerns or complaints from your students or former students. Such reports shall be in a format and contain such information as we prescribe.
- 8.9. Advertising and Promotion.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Gokhale Method franchise agreement stipulates that franchisees must operate their businesses in accordance with all applicable laws and regulations. Franchisees are responsible for securing all necessary permits and licenses at their own expense. They must also adhere to good business practices, maintaining high standards of honesty, integrity, fair dealing, and ethical conduct in all interactions with customers, suppliers, and the franchisor. This indicates that franchisees are expected to manage their business operations responsibly and ethically.
The franchise agreement requires franchisees to notify Gokhale Method immediately in writing of any legal actions, suits, proceedings, orders, writs, injunctions, awards, or decrees that could adversely affect the operation or financial condition of the franchised business. Additionally, franchisees must promptly report any concerns or complaints from students or former students to Gokhale Method in a prescribed format. These reporting requirements suggest that while franchisees have operational independence, Gokhale Method maintains oversight to protect the brand and system standards.
While the FDD excerpts outline the franchisee's responsibilities and reporting obligations, they do not explicitly state whether Gokhale Method is liable for the franchisee's actions or omissions. A prospective franchisee should seek clarification from the franchisor regarding liability and insurance requirements to fully understand their obligations and potential risks.