Upon termination or expiration of the Gokhale Method agreement, what happens to the rights granted to the franchisee?
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.
- 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 Gokhale Method's 2024 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, all rights granted to the franchisee immediately terminate. The franchisee must cease operating the Gokhale Method Franchised Business and cannot represent themselves as a current or former franchisee. The franchisee also must dispose of any Gokhale Method products, equipment, or other items, and cannot transfer them to anyone other than the franchisor.
Furthermore, the franchisee must immediately and permanently cease using any of Gokhale Method's intellectual property, including confidential information, methods, procedures, techniques, Marks, and distinctive forms. This includes discontinuing the use of all signs, advertising materials, displays, stationery, forms, products, and any other articles that display the Marks. The franchisee is also required to de-identify the location of the Franchised Business to ensure there is no use or display of the Marks after termination or expiration.
The franchisee must take action to cancel any assumed name registrations or equivalent registrations that contain the word "Gokhale" or any other Marks, and provide evidence of compliance to Gokhale Method within five days after termination or expiration. Gokhale Method has the option to require the franchisee to assign any interest in the lease or sublease for the location to them. If Gokhale Method does not exercise this option, the franchisee must modify the location to distinguish it from a Gokhale Method Franchised Business, including changing the telephone number and assigning it to the franchisor.