Under what circumstances does the Gokhale Method Guarantee terminate?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
ay request.
- 14.2. Transfer by You. You do not have any right to transfer this agreement. It shall immediately terminate and be of no further force or effect, except for provisions that by their terms survive termination, if you attempt to transfer this Agreement. This Agreement cannot be transferred or devised upon your death or incompetency. Some states may require that we allow you to transfer this agreement in certain circumstances. If the law of any such state is determined to apply to this agreement, then we may impose requirements upon transfer, including payment of a transfer fee of $5,000 and our attorneys' fees and the prior qualification of the transferee to teach the Gok
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
Based on the 2024 Gokhale Method Franchise Disclosure Document, the franchise agreement will immediately terminate if a franchisee attempts to transfer the agreement. There are no explicit mentions of a "Guarantee" terminating, but the franchise agreement itself terminates under specific conditions.
Specifically, the Gokhale Method franchise agreement cannot be transferred by the franchisee. If a franchisee attempts to transfer the agreement, it will immediately terminate and have no further effect, except for provisions that are designed to survive termination. This restriction includes transfer upon death or incompetency of the franchisee.
However, the FDD notes that some states may require Gokhale Method to allow a transfer in certain circumstances. If the laws of such a state apply, Gokhale Method may impose requirements on the transfer, including a $5,000 transfer fee and reimbursement for their attorneys' fees. Additionally, the potential transferee must meet Gokhale Method's qualifications to teach the Gokhale System.