Under what circumstances is a Gokhale Method franchisee not required to follow the franchisor's advice?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
The California Department of Financial Protection and Innovation requires that certain provisions contained in franchise documents be amended to be consistent with California law, including the California Franchise Investment Law, CAL. CORP. CODE Section 3100 et seq., and the California Franchise Relations Act, CAL. BUS. PROF. CODE Section 20000 et seq.
To the extent that the disclosure document and/or Franchise Agreement contain provisions that are inconsistent with the following, such provisions are hereby amended:
- A.
Item 17 of the disclosure document is supplemented by the following language:
- a.
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or non-renewal of a franchise.
If the franchise agreement contains a provision that is inconsistent with the law, the law will control.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees generally must adhere to the advice provided by Gokhale Method Institute, Inc. However, an exception exists as outlined in the addendum for California franchisees.
Specifically, if any provision within the Gokhale Method disclosure document or Franchise Agreement is inconsistent with California law, the law will take precedence. This means that a Gokhale Method franchisee in California is not required to follow Gokhale Method's advice or stipulations if those contradict California's Franchise Investment Law or the California Franchise Relations Act.
This addendum ensures that California franchisees are protected by state laws, which may offer different or more extensive rights than those provided in the standard franchise agreement. It is important for prospective franchisees in California to carefully review both the franchise agreement and the relevant California laws to understand their rights and obligations fully. This type of state-specific addendum is common in franchising to ensure compliance with varying state regulations.