Does Gokhale Method have the option to take over the lease of the franchisee's location upon termination?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.4. Assignment of Lease. You shall, at our option, except in the event you continue to operate any other business you were operating from the same Location assign to us any interest which you have in any lease or sublease for the Location. In the event we do not elect to exercise our option to acquire the lease or sublease for the Location, you shall make such modifications or alterations to the Location (including, without limitation, the changing of, and the assigning to us of, the telephone number) immediately upon termination or expiration of this Agreement as may be necessary to distinguish the appearance of the Location from that of the Franchised Business under the System, and shall make
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, Gokhale Method has the option to take over a franchisee's lease upon termination of the franchise agreement. Specifically, Gokhale Method has the option to receive an assignment of the franchisee's interest in any lease or sublease for the location.
However, this option is not absolute. The franchisee is only obligated to assign the lease if they do not continue to operate any other business from the same location. If the franchisee continues to operate another business at the same location, they are not required to assign the lease to Gokhale Method.
If Gokhale Method does not exercise its option to acquire the lease, the franchisee is responsible for modifying the location to distinguish it from a Gokhale Method Franchised Business. This includes changing the telephone number and removing any branding or identifying marks associated with Gokhale Method.