Can Gokhale Method unilaterally change the System from time to time?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| m.Conditionsforfranchisorapproval | Section14.2 | We have the right to impose conditions on thetransfertothe |
|---|---|---|
| oftransfer | extentwehavetopermittransferunderstatelaw. | |
| n.Franchisor’srightoffirstrefusalto | None | |
| acquirefranchisee’sbusiness | ||
| o.Franchisor’soptiontopurchase | None | |
| franchisee’sbusiness | ||
| p.Deathorincompetenceof | Section14.2 | The franchise agreement cannot be transferred upondeathor |
| franchisee | incompetence. | |
| q.Non-competitioncovenantsduring thetermofthefranchise | Section17.1 | You cannot: divert or attempt to divert any present or prospective customer; employ or seek to employ any person employed by us, our affiliates, or any of our franchisees; be involvedinanyCompetitiveBusiness. |
| r.Non-competitioncovenantsafter thefranchiseisterminatedorexpires | Section17.2 | You cannot be involved for a period of two (2) years in any business that iscompetitivewithourswithina10-mileradius of your former location or of any location then existing wheretheGokhaleSystemistaught. |
| s.Modificationofagreement | Section22and Section8.10 | No amendments to the franchise agreement may be made unless the agreement allows us to unilaterally change something or unless the change is mutually agreed to by the parties and executed in writing. Also, we may change the Systemfromtimetotime. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, Gokhale Method has the right to modify the System from time to time. Specifically, the FDD outlines that while amendments to the franchise agreement require mutual agreement unless the agreement allows unilateral changes, Gokhale Method retains the ability to change the System. This is detailed within Item 17, which addresses renewal, termination, transfer, and dispute resolution.
This provision means that as a Gokhale Method franchisee, you must adhere to any changes Gokhale Method makes to its System. The term 'System' is not defined in the excerpt, so it is important to understand what constitutes the 'System' and what aspects of your business could be altered. These changes could encompass various aspects of the business, such as teaching methods, operational procedures, or marketing strategies.
While Gokhale Method can modify the System, the franchise agreement itself can only be amended unilaterally if the agreement explicitly allows it or through mutual written consent. This offers some protection to the franchisee, as the core contractual terms are less susceptible to arbitrary changes. However, franchisees should be aware that the System, which likely includes key operational and training components, can be changed at Gokhale Method's discretion. Prospective franchisees should seek clarification on the scope and potential impact of these changes during their due diligence.