What section of the Gokhale Method Franchise Agreement discusses dispute resolution by arbitration or mediation?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| m.Conditionsforfranchisorapproval | Section14.2 | We have the right to impose conditions on thetransfertothe |
|---|---|---|
| oftransfer | extentwehavetopermittransferunderstatelaw. | |
| n.Franchisor’srightoffirstrefusalto | None | |
| acquirefranchisee’sbusiness | ||
| o.Franchisor’soptiontopurchase | None | |
| franchisee’sbusiness | ||
| p.Deathorincompetenceof | Section14.2 | The franchise agreement cannot be transferred upondeathor |
| franchisee | incompetence. | |
| q.Non-competitioncovenantsduring thetermofthefranchise | Section17.1 | You cannot: divert or attempt to divert any present or prospective customer; employ or seek to employ any person employed by us, our affiliates, or any of our franchisees; be involvedinanyCompetitiveBusiness. |
| r.Non-competitioncovenantsafter thefranchiseisterminatedorexpires | Section17.2 | You cannot be involved for a period of two (2) years in any business that iscompetitivewithourswithina10-mileradius of your former location or of any location then existing wheretheGokhaleSystemistaught. |
| s.Modificationofagreement | Section22and Section8.10 | No amendments to the franchise agreement may be made unless the agreement allows us to unilaterally change something or unless the change is mutually agreed to by the parties and executed in writing. Also, we may change the Systemfromtimetotime. |
| t.Integration/mergerclause | Section22 | Only the terms of the franchise agreement are binding (subjecttostatelaw). |
| u.Disputeresolutionbyarbitrationor mediation | Section24 | Except for certain claims, all disputes are subject to mediation, and if mediation does not resolve a dispute, it shallberesolvedinarbitrationinPaloAlto,California. |
| v.Choiceofforum | Section24 | Arbitration must be in Palo Alto, California and any claims not subject to arbitration shall be brought only inthestateor federalcourtsforPaloAlto,California. |
| w.Choiceoflaw | Section24 | California law shall apply, except that the California Franchise Relations Act and the California Franchise Investment Law, nor any portions thereof, shall apply unless you satisfy the requirementsforapplicationofsuchlawapart from the choice of law provision. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Section 24 of the franchise agreement addresses dispute resolution through arbitration or mediation. Except for certain claims, all disputes are subject to mediation first. If mediation fails to resolve the dispute, it will be resolved through arbitration in Palo Alto, California.
This means that if a Gokhale Method franchisee has a dispute with the franchisor, they must first attempt to resolve it through mediation. If mediation is unsuccessful, the dispute will be settled through binding arbitration, a process where a neutral third party makes a decision that is legally binding on both parties. The location for arbitration is specified as Palo Alto, California, regardless of where the franchisee's business is located.
Additionally, Section 24 specifies that California law governs the franchise agreement. However, there are exceptions: the California Franchise Relations Act and the California Franchise Investment Law do not apply unless the franchisee independently meets the requirements for their application. Furthermore, the laws of the state where the franchise is located will govern Section 17 of the agreement and its enforcement, which pertains to non-competition covenants.