What section of the Gokhale Method franchise agreement discusses non-competition covenants during the term of the Gokhale Method franchise?
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. |
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 17.1 of the franchise agreement addresses non-competition covenants during the term of the franchise. This section specifies that franchisees are prohibited from engaging in certain activities that could harm Gokhale Method's business interests.
Specifically, during the franchise term, a Gokhale Method franchisee cannot divert or attempt to divert any present or prospective customer. They are also prohibited from employing or seeking to employ any person employed by Gokhale Method, its affiliates, or any of its franchisees. Furthermore, franchisees are barred from being involved in any Competitive Business.
These non-competition covenants are designed to protect Gokhale Method's customer relationships, workforce, and overall competitive position in the market. Franchisees should carefully review Section 17.1 to fully understand the restrictions and ensure they do not violate these terms during the term of their franchise agreement.