Under what conditions is a Gokhale Method franchisee required to pay a transfer fee?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPEOFFEE | AMOUNT | DUEDATE | REMARKS |
|---|---|---|---|
| TransferFee | Upto$5,000 | Upontransferofanyinterestin thefranchiseorsubstantiallyall assets | Seenote7. |
We do not allow transfers of the franchise under the Franchise Agreement.
If, however, state law gives you the right to transfer, you will be required to pay a fee of $5,000 in addition to fulfilling other requirements.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method generally does not allow franchise transfers. However, if state law grants a franchisee the right to transfer their franchise, Gokhale Method requires the franchisee to pay a transfer fee of $5,000 in addition to meeting other requirements.
The transfer fee is payable upon the transfer of any interest in the franchise or substantially all of its assets. This fee compensates Gokhale Method for the administrative and legal costs associated with reviewing and approving the transfer to a new franchisee.
It is important for prospective Gokhale Method franchisees to understand the conditions under which a transfer may be permitted and the associated costs. Franchisees should consult with legal counsel to understand their rights under state law regarding franchise transfers.