Under what condition can Gokhale Method require the franchisee to assign their lease?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Gokhale Method's 2024 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, Gokhale Method has the option to require the franchisee to assign any interest they have in the lease or sublease for the business location to Gokhale Method. However, this is not required if the franchisee continues to operate another business from the same location.
This clause gives Gokhale Method control over the location of a former franchise. If Gokhale Method chooses to exercise its option, the franchisee must assign the lease to them. This ensures that Gokhale Method can maintain a presence in that location with a new franchisee or corporate-owned outlet.
However, if the franchisee continues to operate a different business from the same location after the Gokhale Method franchise terminates, the assignment of the lease is not required. In this case, the franchisee is responsible for modifying the location to clearly differentiate it from a Gokhale Method Franchised Business, including changing the telephone number and removing any branding. This protects Gokhale Method's brand identity and prevents confusion among customers.