Under what condition is the Gokhale Method franchisor's option to acquire the lease not applicable?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.4. Assignment of Lease. You shall, at our option, except in the event you continue to operate any other business you were operating from the same Location assign to us any interest which you have in any lease or sublease for the Location. In the event we do not elect to exercise our option to acquire the lease or sublease for the Location, you shall make such modifications or alterations to the Location (including, without limitation, the changing of, and the assigning to us of, the telephone number) immediately upon termination or expiration of this Agreement as may be necessary to distinguish the appearance of the Location from that of the Franchised Business under the System, and shall make
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method has the option to acquire the lease or sublease for the franchise location upon termination or expiration of the franchise agreement. However, this option is not applicable if the franchisee continues to operate another business from the same location.
In this case, if a Gokhale Method franchisee operates another business from the same location, they are not obligated to assign the lease or sublease to Gokhale Method upon termination or expiration of the franchise agreement. Instead, the franchisee must modify or alter the location to differentiate its appearance from a Gokhale Method Franchised Business, including changing the telephone number and assigning it to Gokhale Method.
This provision protects the franchisee's ability to continue operating a separate business from the same location, while also ensuring that the Gokhale Method brand and image are not diluted or confused after the franchise agreement ends. It is a fairly common practice to allow a franchisee to continue operating at a location under certain conditions, especially if they have other business interests there.