What is the transfer fee for a Gokhale Method franchise, if transfer is permitted by law?
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, franchisees generally do not have the right to transfer their franchise. However, if applicable law requires Gokhale Method to allow a transfer, the company has the right to impose certain requirements on the transfer.
One of these requirements is the payment of a transfer fee. The transfer fee is set at $5,000, and the franchisee may also be responsible for Gokhale Method's attorneys’ fees.
This means that if a franchisee is legally permitted to transfer their Gokhale Method franchise, they should anticipate paying a $5,000 transfer fee plus any legal costs incurred by Gokhale Method to approve the transfer. It is important for prospective franchisees to understand the conditions under which a transfer might be legally required in their specific location, as state laws vary.