What standards must a Gokhale Method franchisee adhere to in operating their franchised business?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
To ensure that high and uniform standards of service and quality are maintained, you must operate your Gokhale Method Franchised Business in strict conformity with our methods, standards, specifications, protocols and customer service requirements, and you must purchase certain supplies, fixtures, and equipment from us. Except for the proprietary items that we supply, you may purchase supplies, fixtures and equipment from any source, so long as the items meet our specifications, which are listed below.
Approved Suppliers
Initial Equipment and Furnishings
Prior to opening your Franchised Business, you must purchase the following equipment and furnishings from us: a Gokhale® Roller, a Gokhale Pain-Free™ Chair, 8 Stretchsit® Cushions, 8 Gokhale® Wedges, 8 Gokhale® Head Cushions, 8 copies of 8 Steps to a Pain-Free Back, and sufficient shirts or uniforms (if required by us). You must also obtain an application proprietary to GMI for an iPhone; there is no charge for this application. There are no other suppliers for these items, because they are proprietary to us and GME. Because these items are proprietary to us, we do not authorize other sources to supply these items nor do we permit you to purchase them elsewhere. We do not supply the specifications of these items to third parties. Other than these items, you may purchase other required equipment and supplies from any source that can provide equipment and supplies that meet our specifications.
Location Standards
Although you are not required to purchase or lease real estate, and we anticipate that you will rent space from a third party on an hourly, daily, weekly or monthly basis, we reserve the right to prescribe standards for the location where you will conduct classes. Presently, for private students, room dimensions should be at least 10 by 10 feet; for groups of four or less, 10 by 16 feet; and for 5 to 8 students, 14 by 20 feet. Space should be in compliance with local building codes; with federal, state and local laws, including the Americans with Disabilities Act; with local zoning and land use regulations for conducting Gokhale Method classes; and have access to rest rooms.
Insurance
You must maintain in force commercial general liability insurance protecting you, us, and the parties' respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Franchised Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. All insurance policies must: (1) be issued by carriers approved by us; (2) contain the types and minimum amounts of coverage, exclusions and maximum deductibles as we prescribe periodically; (3) name us and our Affiliates as additional insureds; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; and (5) include such other provisions as we may require periodically. We do not require you to purchase insurance from any particular source.
Identified below are the types and minimum coverage amounts that currently we require for each franchised Gokhale Method business. If your state requires greater coverage amounts for the categories listed below, you must obtain and maintain coverage as required by your state.
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit: $3,000,000 Personal Injury Limit: $1,000,000
COMMERCIAL OR PERSONAL AUTOMOBILE LIABILITY:
Bodily Injury and Property Damage Combined Single Limit: $1,000,000 Hired and Non-Owned Liability Limit: $1,000,000
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees must adhere to specific operational standards to ensure consistent service and quality. These standards encompass methods, specifications, protocols, and customer service requirements. Franchisees are obligated to purchase certain supplies, fixtures, and equipment directly from Gokhale Method.
Specifically, before opening, franchisees must acquire items like the Gokhale® Roller, Gokhale Pain-Free™ Chair, Stretchsit® Cushions, Gokhale® Wedges, Gokhale® Head Cushions, copies of "8 Steps to a Pain-Free Back", and required shirts or uniforms from Gokhale Method. Additionally, franchisees need to obtain a proprietary GMI application for an iPhone at no charge. While these particular items must be sourced directly from Gokhale Method, other required equipment and supplies can be purchased from alternative suppliers, provided they meet Gokhale Method's specifications.
Gokhale Method also sets standards for the location where classes are conducted. For private students, the room should be at least 10 by 10 feet; for groups of four or less, 10 by 16 feet; and for 5 to 8 students, 14 by 20 feet. The space must comply with local building codes, federal, state, and local laws (including the Americans with Disabilities Act), and local zoning and land use regulations. Furthermore, franchisees must maintain specific insurance coverage, including commercial general liability ($3,000,000 general aggregate limit and $1,000,000 personal injury limit) and commercial or personal automobile liability ($1,000,000 combined single limit for bodily injury and property damage, and $1,000,000 for hired and non-owned liability).