Upon expiration or termination of the Gokhale Method agreement, is any monetary amount assigned to the franchisee for goodwill associated with the Marks?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon termination or expiration of this Agreement for any reason, all rights granted hereunder to you shall forthwith terminate, and:
- 16.1. Cease Operations. You shall immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as a present or former Gokhale Method Franchised Business. Immediately upon the expiration or termination hereof, you shall dispose of, and not transfer to anyone other than us, any Gokhale Method products, equipment or other items sold hereunder
- 16.2. Cease Use of Confidential Information and Marks. You shall immediately and permanently cease to use, in any manner whatsoever, any of our Intellectual Property, including but not limited to Confidential Information, methods, procedures and techniques associated with the System, and all Marks and distinctive forms, slogans, signs, symbols, colors, and devices associated with the System. In particular, you shall cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, products and any other articles that display the Marks. You shall de-identify the Location of the Franchised Business so that there is no use or display of the Marks after the effective date of termination or expiration.
- 16.3. Cancellation of Registrations. You shall take such action as may be necessary to cancel any assumed name registration or equivalent registration obtained by you which contains the "Gokhale" word, or any other Marks, and you shall furnish us with evidence satisfactory to us of compliance with this obligation within five (5) days after termination or expiration of this Agreement.
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, franchisees do not receive any monetary amount for goodwill associated with the Gokhale Method marks. Instead, franchisees must immediately cease operating the Franchised Business and cannot represent themselves as a present or former Gokhale Method franchisee.
Furthermore, franchisees must immediately and permanently stop using any of Gokhale Method's intellectual property, including confidential information, methods, procedures, techniques, and all Marks. This includes discontinuing the use of signs, advertising materials, displays, stationery, forms, products, and any other articles that display the Marks. Franchisees are also required to de-identify the location of the Franchised Business to ensure no use or display of the Marks remains after termination or expiration.
Additionally, franchisees must take necessary actions to cancel any assumed name registrations containing the word "Gokhale" or any other Marks and provide evidence of compliance within five days after termination or expiration. These obligations ensure that Gokhale Method retains complete control over its brand and intellectual property, preventing any potential misuse or confusion in the market after a franchise agreement ends.