Is there a requirement for Gokhale Method franchisees to offer free promotional classes?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
as follows:
- 12.1. Local Marketing, Advertising, and Promotion Expenditure. You shall follow the guidelines in the Teachers' Manual and Policy Statements regarding marketing, advertising and promotion and upon our request, you shall provide satisfactory evidence of all Local Marketing, Advertising and Promotion Expenditures in such manner as we shall direct. Such guidelines may include, but are not limited to offering free promotional classes. You shall bear the cost of all such activities. You also agree to pay us for any advertising materials that we create for you and at your request, including the costs of creating such materials and reproducing them.
- 12.2. Advertising Materials. All advertising and promotion by you shall be in such media and of such type and format as we may approve, shall be conducted in a dignified manner and shall conform to such standards and requirements as we may specify. You shall not use any advertising or promotional plans or materials relating to the Gokhale Method unless and until you have received written approval from us.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees may be required to offer free promotional classes as part of their local marketing, advertising, and promotion efforts. The guidelines for these activities are detailed in the Teacher's Manual and Policy Statements, which Gokhale Method may request evidence of expenditures for. The franchisor specifies that these guidelines may include offering free promotional classes.
The FDD also highlights the "Free Workshop" as an important promotional tool for prospective students to learn about the Gokhale Method's principles and experience its benefits without risk. These hour-long workshops include discussions, images, and hands-on work to introduce the method, along with addressing individual concerns.
While the offering of free promotional classes is not explicitly mandated in the franchise agreement, Gokhale Method retains the right to include it as a guideline within the Teacher's Manual and Policy Statements. Therefore, franchisees should be prepared to incorporate such classes into their marketing strategies if directed by the franchisor. Franchisees bear the cost of all local marketing, advertising, and promotion expenditures.