What requirements might Gokhale Method impose on a franchisee transfer if required by state law?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
ay request.
- 14.2. Transfer by You. You do not have any right to transfer this agreement. It shall immediately terminate and be of no further force or effect, except for provisions that by their terms survive termination, if you attempt to transfer this Agreement. This Agreement cannot be transferred or devised upon your death or incompetency. Some states may require that we allow you to transfer this agreement in certain circumstances. If the law of any such state is determined to apply to this agreement, then we may impose requirements upon transfer, including payment of a transfer fee of $5,000 and our attorneys' fees and the prior qualification of the transferee to teach the Gok
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees generally do not have the right to transfer their franchise agreement. However, some states may require Gokhale Method to allow transfers in certain circumstances. If such a state law applies, Gokhale Method may impose specific requirements for the transfer.
These requirements can include the payment of a transfer fee, which is specified as $5,000, as well as covering Gokhale Method's attorney's fees associated with the transfer. Additionally, the potential transferee must meet Gokhale Method's qualifications to teach the Gokhale System before the transfer can be approved.
This means that if a franchisee is in a state that mandates transfer rights, they may still face financial and qualification hurdles. The $5,000 transfer fee and legal costs could be a significant expense, and finding a qualified transferee who meets Gokhale Method's standards is crucial for completing the transfer. Prospective franchisees should consider these potential costs and requirements when evaluating the franchise opportunity, especially if they anticipate needing to transfer the franchise in the future.