When does the renewal term for a Gokhale Method franchise begin?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
3. TERM AND RENEWAL
- 3.1. Term. This Agreement shall be in effect beginning on the Effective Date, and the term of this Agreement shall be five (5) years (the "Term") from the date you complete your Immersion Week further described in Section 7.1 of this Agreement, unless this Agreement is sooner terminated pursuant to its terms; provided, however, that if the term is a renewal term, then the term shall be five (5) years from the date on which the renewal agreement is executed and if you have completed Immersion Week prior to signing this Agreement, then the term shall be five (5) years from the date of execution of this Agreement.
- 3.2. Renewal. Upon the expiration of the Term of this Agreement, you may, subject to the following conditions, renew this Agreement for consecutive terms of five (5) years. We may require, in our sole business judgment, that any or all of the following conditions be met prior to such renewal:
- 3.2.1. You shall give us written notice of your election to renew no fewer than three (3) months nor more than twelve (12) months prior to the end of the Term;
- 3.2.2. You shall meet such requirements as we may reasonably impose upon you, which may include requiring that you execute a general release in our favor and that you sign a new form of franchise agreement, which may supersede this agreement in all respects, including the fees payable.
- 3.2.3. Survivability. Your obligations under Sections 9, 10, and 16 of this Agreement shall survive its termination.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the renewal term for a franchise agreement is five years from the date the renewal agreement is executed. This assumes that the initial Immersion Week training was completed before signing the initial agreement. If Immersion Week is completed after signing the initial agreement, the initial term is five years from the completion date of Immersion Week.
To renew the Gokhale Method franchise agreement, the franchisee must provide written notice of their election to renew the agreement no fewer than three months and no more than twelve months before the end of the current term. Gokhale Method may also require the franchisee to meet certain conditions before renewal, such as executing a general release in favor of Gokhale Method and signing a new franchise agreement, which may supersede the original agreement in all respects, including fees.
It's important to note that certain obligations, specifically those under Sections 9, 10, and 16 of the Gokhale Method franchise agreement, will continue even after the termination of the agreement. These sections likely cover important aspects such as confidentiality, non-compete clauses, or obligations upon termination, and franchisees should carefully review these sections to understand their responsibilities even after the franchise relationship ends.