Where are the rights retained by Gokhale Method set forth in the Franchise Agreement?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Except for rights expressly granted to you under the Franchise Agreement, we retain all of our rights with respect to the Marks, the System and Gokhale Method businesses anywhere in the world, including the rights set forth in Section 2.2 of the Franchise Agreement, without compensation to you.
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the rights retained by Gokhale Method are detailed in Section 2.2 of the Franchise Agreement. Specifically, Item 12 states that Gokhale Method retains all rights with respect to the Marks, the System, and Gokhale Method businesses worldwide, except for the rights expressly granted to the franchisee in the Franchise Agreement.
In addition, Item 22 outlines further rights retained by Gokhale Method. Section 2.1 clarifies that while franchisees can teach the Gokhale System at any Approved Facility within their country, Gokhale Method reserves the right to approve the general geographic area in which the franchisee operates and markets. Furthermore, Gokhale Method retains exclusive rights to communicate with, market to, and maintain relationships with students that the franchisee teaches.
Section 9.3.2 of Item 22 also states that Gokhale Method retains the rights to use the Marks themselves, grant other licenses for the Marks, develop other systems using the Marks, and modify or discontinue the use of the Marks. These rights are not exclusive to the franchisee, allowing Gokhale Method to further develop and expand its brand and system without providing additional rights to the franchisee. This means a Gokhale Method franchisee should be aware that the franchisor has broad latitude to evolve the brand and system, and to engage directly with students they teach.