Is the Gokhale Method permitted to grant other licenses for their marks?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.2. The license of the Marks granted to you is not exclusive, and we retain the rights, among others: (a) to use the Marks ourselves in connection with selling products, merchandise, and services; (b) to grant other licenses for the Marks; (c) to develop and establish other systems using the Marks, similar Marks, or any other Marks; and (d) to grant licenses thereto without providing any rights therein to you.
- 9.3.3. We reserve the right, in our sole discretion, to modify, add to, or discontinue use of the Marks, or to substitute different Marks, for use in identifying the System and the businesses operating thereunder. You agree that if we change the Marks that you will comply with any changes we require you to make at your expense.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the Gokhale Method retains the right to grant other licenses for their marks. The franchise agreement stipulates that the license granted to the franchisee is not exclusive. This means that Gokhale Method reserves several rights regarding the use of its marks.
Specifically, Gokhale Method can use the marks themselves in connection with selling products, merchandise, and services. They can also develop and establish other systems using the marks, similar marks, or any other marks. Furthermore, Gokhale Method can grant licenses to these other systems without providing any rights to the original franchisee.
This has significant implications for a prospective Gokhale Method franchisee. The franchisee's license to use the Gokhale Method marks is non-exclusive, meaning Gokhale Method can authorize others to use the same marks, potentially creating competition. Additionally, Gokhale Method can modify or discontinue the use of the marks, or substitute different marks, and the franchisee is obligated to comply with these changes at their own expense. This could require the franchisee to invest further in rebranding or marketing efforts to align with the new marks.