What section of the Gokhale Method franchise agreement discusses transfer by the Gokhale Method franchisee?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTIONIN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| a.Lengthofthefranchiseterm | Section3.1 | Thetermisfive(5)years. |
| b.Renewalorextension | Section3.2 | You may have the right to renew for consecutive terms of five (5) years subjecttocertainconditions(e.g.,thatyousign anewformoffranchiseagreement). |
| c.Requirementsforfranchiseeto reneworextend | Section3.2 | You must give written notice of your decision to renew no fewer thanthreemonthsnormorethan12monthspriortothe end of the then-current term. You mayalsohavetoexecutea general release in our favor and signanewformoffranchise agreement. |
| d.Terminationbyfranchisee | None | |
| e.Terminationbyfranchisorwithout | None | |
| cause | ||
| f.Terminationbyfranchisorwith cause | Section15 | We may terminate for cause. Depending on the reason for termination, we may not provide you an opportunity tocure. Seethisitem17(g)and(h)forfurtherdescription. |
| g.“Cause”defined–curabledefaults | Section15.3 | You have 30 days to cure any default not enumerated in Section15.1andSection15.2. |
| h.“Cause”defined–non-curable defaults | Section15.1and Section15.2 | We may terminate the Franchise Agreement without providing you an opportunity to cure for any of the deficiencies identified in Sections 15.1 or 15.2 of the FranchiseAgreement. |
| i.Franchisee’sobligationson termination/non-renewal | Section16 | Cease operations, cease use of confidential information and trademarks, assign your lease to us (at our option), pay all sums owed tousandouraffiliates,payliquidateddamagesto us, if applicable, return manuals and confidential information, sell us your equipment (at our option), and complywithcovenantsnottocompete. |
| j.Assignmentortransferofcontract | Section14.1 | There isnorestrictiononourrighttoassignortransferunless |
| byfranchisor | requiredbylaw. | |
| k.Transferbyfranchisee | Section14.2 | Youhavenorighttotransfer. |
| l.Franchisorapprovaloftransferby franchisee | Section14.2 | If applicable law requires that we allow you to transfer the franchise agreement, we have the right to impose requirements upon the transfer, including requiring a payment of a transfer fee of $5,000 and our attorneys’ fees, |
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, Item 17 outlines the provisions regarding the transfer of the franchise. Specifically, Section 14.2 of the franchise agreement addresses the transfer of the franchise by the franchisee.
The FDD indicates that Gokhale Method franchisees generally do not have the right to transfer their franchise. However, if applicable law requires Gokhale Method to allow a franchisee to transfer the franchise agreement, Gokhale Method has the right to impose certain requirements. These requirements include the payment of a $5,000 transfer fee, as well as the franchisor's attorney's fees.
This means that while Gokhale Method aims to restrict transfers, local laws might override this. If a transfer is legally permissible, the franchisee should anticipate paying a $5,000 transfer fee plus legal costs. This is a fairly standard practice in franchising, as franchisors typically want to ensure that any new franchisee meets their standards and that the transfer process covers their administrative and legal expenses.