Under what condition can a Gokhale Method franchisee disclose confidential information?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.1. In-Term Covenants. You specifically acknowledge that, pursuant to this Agreement, you will receive valuable, specialized training and Confidential Information, including, without limitation, information regarding the Gokhale Method and techniques used by us and the System.
You covenant that during the Term of this Agreement, except as otherwise approved in writing by us, you shall not, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or legal entity:
- 17.1.1.
Divert or attempt to divert any present or prospective customer of any Gokhale Method class, service or product to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System;
- 17.1.2.
Employ or seek to employ any person who is at that time employed by us, our Affiliates, or by any of our other franchisees, or otherwise directly or indirectly induce such person to leave his or her employment; or
- 17.1.3.
Own, maintain, operate, engage in, act as a consultant for, perform services for, or have any interest in any Competitive Business or offer to sell or sell any services, equipment, product or other item which is the same as, or substantially similar to, any of the services, equipment, products or other items offered by a Gokhale Method Institute location.
The prohibitions in this Section 17 shall not apply to interests in or activities performed in connection with your Franchised Business.
- 17.2.
Post-Term Covenants.
You covenant that, except as otherwise approved in writing by us, you shall not, within a 10-mile radius of your former Location or of any location then existing where the Gokhale Method is taught, and for a continuous, uninterrupted period of two (2) years following the end of our relationship with you, whether by termination, expiration or otherwise, either directly or indirectly own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in (as owner or otherwise) any Competitive Business.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, a franchisee is prohibited from disclosing confidential information both during the term of the agreement and after its termination, unless they receive explicit written approval from Gokhale Method.
During the term of the agreement, franchisees receive valuable training and confidential information regarding the Gokhale Method and its techniques. Franchisees are explicitly prohibited from diverting customers to competitors or engaging in activities that could harm the goodwill associated with the Gokhale Method brand and system. They are also restricted from employing or soliciting employees of Gokhale Method or its other franchisees and from engaging in any competitive business without written consent.
Post-termination, the franchisee is restricted from operating a competitive business within a 10-mile radius of their former location or any existing Gokhale Method location for two years, unless Gokhale Method provides written approval. This includes owning, operating, or assisting a business that offers similar services or products to those of Gokhale Method. These measures are in place to protect Gokhale Method's market position and proprietary information.