Does the Gokhale Method represent that they have the right to use and license the Marks?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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Preamble: We have developed a method for restoring Primal PostureTM as evidenced by young children, our ancestors and people in non-industrial cultures (the "Gokhale Method®") as well as materials, procedures and protocols for teaching the Gokhale Method (the "Gokhale System") as well as materials, procedures and protocols for operating a business teaching it (the "Gokhale Way") under trademarks and trade names that we or our affiliate own or may own in the future (the "Marks"). You wish to teach the Gokhale System and to use the Gokhale Way to operate a business (the "Franchised Business") as well as to use the Marks and we are willing to grant you certain rights to do so, as set forth herein.
1. GRANT OF FRANCHISE
- 1.1. Grant of Franchise. We grant to you the right to teach the Gokhale System in the manner and to the categories of students we authorize ("Approved Formats") in accordance with the terms and conditions set forth in this Agreement. This Grant of Franchise is to teach the Gokhale System only to individual students, or to groups of students that were solicited individually ("Consumer Students"). No License is hereby granted to any other types of students, including, but not limited to, groups of students organized by companies or organizations ("Corporate Groups") or students with no prior affiliation aggregated together by a third party that is not you ("Wholesale Groups").
- 1.2. Conditions and Suspension.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method represents that they have developed a method, the "Gokhale Method®," and a system, the "Gokhale System," including materials, procedures, and protocols for teaching it. They also state they have materials, procedures, and protocols for operating a business teaching it, referred to as the "Gokhale Way," under trademarks and trade names that they or their affiliates own or may own in the future, which are referred to as the "Marks."
Gokhale Method grants franchisees the right to teach the Gokhale System and use the Gokhale Way to operate a business. They also grant the right to use the Marks, as outlined in the franchise agreement.
However, the license to use the Marks is non-exclusive. Gokhale Method retains the right to use the Marks themselves for selling products, merchandise, and services, grant other licenses for the Marks, develop other systems using the Marks or similar marks, and grant licenses to those systems without providing any rights to the franchisee. Gokhale Method also reserves the right to modify, add to, or discontinue the use of the Marks or substitute different Marks.
These stipulations mean that while franchisees are granted the right to use Gokhale Method's intellectual property, Gokhale Method retains significant control and can make changes that affect how the franchisee operates. A prospective franchisee should consider the implications of these rights and restrictions, especially the possibility of changes to the Marks and the non-exclusive nature of the license.