What rights does Gokhale Method have regarding data and information from the franchisee's computer system?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.6. Computer Networks. You agree to participate in any intranet or extranet computer network or other Internet-based or computer assisted communication or teaching system we adopt or develop, and to purchase and implement such equipment or supplies as we may reasonably require.
You will also execute such software licenses or other agreements as we may reasonably prescribe.
11. ACCOUNTING AND RECORDS
11.1. Sales and Student Records. You shall create, record and maintain such information on sales and students as we designate in the Teachers' Manual (the "Records"). You agree to maintain such Records during the Term of this Agreement and for two years thereafter. We may request you to provide us with copies of Records at our discretion, and you agree to provide us with such Records. You shall comply with all the requirements in the Teachers' Manual relating to registering students and maintaining their records via the prescribed Franchisor system.
11.2. Other Reports. Upon our written request you shall, at your expense, submit to us within 10 days and in the form we prescribe, reports such as financial statements and other data, including tax returns.
10.6. Ideas and Concepts.
If you develop any ideas, concepts, methods, techniques or materials of improving posture, reducing back pain, improving physical well-being or that otherwise relate to the Gokhale Method ("Ideas and Concepts") during the Term of this Agreement, you agree to disclose those Ideas and Concepts to us and that we may use them, in our discretion, in improving or modifying the Gokhale Method, offer them to our Affiliates, other Franchisees or business partners without the need to obtain any prior approval from you, nor without any compensation to you.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees must participate in any intranet or extranet computer network that Gokhale Method adopts or develops. This includes purchasing and implementing any equipment or supplies that Gokhale Method reasonably requires. Franchisees must also execute any software licenses or other agreements that Gokhale Method prescribes.
Additionally, franchisees are required to create, record, and maintain information on sales and students as designated in the Teachers' Manual. These records must be maintained during the term of the Franchise Agreement and for two years after. Gokhale Method can request copies of these records at their discretion, and the franchisee must provide them. Franchisees must also comply with all requirements in the Teachers' Manual relating to registering students and maintaining their records via the prescribed Gokhale Method system.
Upon written request, franchisees must submit reports such as financial statements and other data, including tax returns, within 10 days in the form prescribed by Gokhale Method. This gives Gokhale Method broad access to the franchisee's operational and financial data. These stipulations are fairly typical in franchising, allowing the franchisor to monitor performance and ensure compliance with system standards.
If a franchisee develops any ideas, concepts, methods, techniques, or materials related to the Gokhale Method, they must disclose them to Gokhale Method. Gokhale Method can then use these ideas to improve or modify the Gokhale Method, and offer them to affiliates, other franchisees, or business partners without needing the franchisee's approval or providing any compensation. This clause ensures that any innovations developed within the franchise network benefit Gokhale Method directly.