Does Gokhale Method offer franchises to entities other than natural persons?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
To simplify the language in this Franchise Disclosure Document, unless the context otherwise requires, all references to "we," "us", or "our" refer to Gokhale Method Institute, Inc., and all references to "Franchisee," "you," or "your" refer to the person who is offered or granted the right to operate a Gokhale Method franchise under a Franchise Agreement. The franchise is referred to here as the "Franchised Business" or the "Franchise." We offer the Franchise only to natural persons, although you may form a legal entity to carry on the business aspects of the Franchised Business. The use of paragraph captions throughout this document is for convenience of reference only and is not intended to change the meaning of any text.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–10)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method offers franchises only to natural persons. However, the document states that a franchisee may form a legal entity to manage the business aspects of the Franchised Business.
This means that while the Franchise Agreement will be with an individual, that individual can operate the Gokhale Method franchise through a corporation, LLC, or other legal structure. This is a fairly common practice in franchising, as it can provide certain legal and tax benefits to the franchisee.
Prospective franchisees should consult with their legal and financial advisors to determine the best way to structure their business. While Gokhale Method requires the franchise agreement to be with a natural person, utilizing a legal entity for business operations offers flexibility and potential advantages.