Does Gokhale Method have the right to transfer or assign the Franchise Agreement?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
in equity.
14. TRANSFER OF INTEREST
- 14.1. Our Right to Transfer. We shall have the right to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity, and any of our designated assignee(s) shall become solely responsible for all of our obligations under this Agreement from the date of assignment. You shall promptly execute such documents in connection with such transfer as we may 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 the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method has the right to transfer or assign the Franchise Agreement, in whole or in part, to any person or legal entity. If Gokhale Method assigns the agreement, the assignee becomes solely responsible for Gokhale Method's obligations from the date of assignment. The franchisee must promptly execute any documents related to the transfer that Gokhale Method requests.
However, the franchisee does not have the right to transfer the agreement. Any attempt by the franchisee to transfer the agreement results in immediate termination, except for provisions that survive termination. The agreement cannot be transferred or devised upon the franchisee's death or incompetency.
Certain state laws may require Gokhale Method to allow the franchisee to transfer the agreement under specific circumstances. If such a law applies, Gokhale Method may impose requirements on the transfer, including a $5,000 transfer fee, attorney's fees, and the prior qualification of the transferee to teach the Gokhale System. This means that while Gokhale Method retains broad rights to transfer the agreement, a franchisee's ability to do so is highly restricted and subject to Gokhale Method's approval and potential fees.