What section of the Gokhale Method franchise agreement discusses modification of the agreement?
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). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, Section 22 and Section 8.10 of the franchise agreement address modifications. These sections state that amendments to the franchise agreement are not allowed unless the agreement permits Gokhale Method to unilaterally make changes, or if both parties mutually agree to the change in writing. Additionally, Gokhale Method retains the right to change the Gokhale Method System from time to time.
This means that as a franchisee, your ability to negotiate changes to the franchise agreement is limited. Gokhale Method can make unilateral changes if the agreement allows, and any other changes require mutual written consent. This is a fairly standard practice in franchising, where franchisors need to maintain consistency across all franchise locations.
The fact that Gokhale Method can change the System from time to time is also important. This could include changes to teaching methods, materials, or other aspects of the Gokhale Method program. Franchisees need to stay updated on these changes and adapt their business accordingly. It is important to understand the scope and potential impact of these changes on your business operations and profitability.