What is the relationship between Gokhale Method Institute, Inc. and the Franchise Agreements?
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.
The Franchisor. We are a corporation formed under California law on November 3, 2011. Our principal business address is 3790 El Camino Real #1033, Palo Alto, CA 94306. Our agent or agents to receive service of process, is Esther Gokhale, GMI, 3790 El Camino Real #1033, Palo Alto, CA 94306. Our sole business is the offer and sale of franchises hereunder and the performance of our duties under the Franchise Agreements as franchisor. We previously taught the Gokhale Method and operated a business of the type being offered herein at our headquarters in Palo Alto, California. We have not conducted business or offered franchises in any other line of business.
Parent or Predecessor. Esther Gokhale, our founder and president, is our predecessor and has conducted classes in yoga and posture since at least 1980. She began teaching classes dedicated to posture for back pain in 1992 and was certified to teach Aplomb®, a branded form of posture instruction, in 1993. Beginning in approximately 1996, Ms. Gokhale began researching and developing the distinctive style, content and pedagogic approach that became the Gokhale Method. The name Gokhale Method was trademarked in 2010. In April, 2008, she published the book & Steps to a Pain Free Back, and at that time began teaching group courses in posture to relieve back pain. Other than as disclosed above, Ms. Gokhale has not conducted business in any other line of business, and has not offered franchises in any other line of business. Ms. Gokhale entered into Affiliate Program Agreements, described immediately below, which may be considered the offering of franchises in this line of business.
Our parent corporation, which owns all interest in us, is Gokhale Method Enterprise, Inc. ("GME"). GME is located at 3790 El Camino Real #1033, Palo Alto, CA 94306. GME is wholly owned by Esther Gokhale. GME is engaged in the business of teaching the Gokhale Method to individuals and to employees of corporations and of operating a business of the type being offered herein. GME is responsible for developing and enhancing the Gokhale Method, and it also conducts research and product development and is the source of products bearing the Marks and that franchisees may purchase, or be required to purchase from us, in connection with the operation of their franchise. GME also provides certain administrative and marketing services to us in exchange for a fee. GME does not and has not offered franchises in any line of business.
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 Institute, Inc. is the franchisor that offers and sells franchises for teaching the Gokhale Method. The document clarifies that references to "we," "us," or "our" in the Franchise Disclosure Document refer to Gokhale Method Institute, Inc., while "Franchisee," "you," or "your" refer to the individual who is granted the right to operate a Gokhale Method franchise under a Franchise Agreement. The franchisor's sole business is the offer and sale of franchises and the performance of its duties under the Franchise Agreements. A copy of the current form of Franchise Agreement is attached as Exhibit "A" to the Disclosure Document.
The Gokhale Method franchise authorizes the franchisee to teach the Gokhale Method according to a prescribed curriculum to defined categories of customers, in classes of specified numbers of students, referred to as "Approved Formats." The franchisor may also authorize franchisees to offer other wellness offerings and to sell products or services that they authorize from time to time. However, the franchisee's rights to teach the Gokhale Method depend on the satisfactory completion of initial training and any further training classes or refresher courses as directed by Gokhale Method Institute, Inc. The franchisor may suspend the franchisee's right to teach if the required training is not completed to their satisfaction.
Prospective franchisees should note that the franchise is not transferable due to the individualized nature of the teaching. This means it may not be possible to sell the business. The franchisor was formed as a corporation under California law on November 3, 2011. Its principal business address is 3790 El Camino Real #1033, Palo Alto, CA 94306. The agent to receive service of process is Esther Gokhale, located at the same address. Gokhale Method Institute, Inc. previously taught the Gokhale Method and operated a business of the type being offered at its headquarters in Palo Alto, California.