B63/100FDD 2026
Gokhale Method Institute — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
California
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINORNo financial performance disclosure (Item 19) — cannot validate ROI claims or typical unit economics
- 02MINORUnprotected territory creates direct competition risk with other franchisees in same market
- 03MINOROnly 18 units system-wide with unknown growth trajectory — insufficient scale and unclear expansion momentum
- 04HIGHGoing concern status is FALSE — suggests potential financial instability at franchisor level
- 05MINORVariable royalty structure ($10-$180 per person per course) lacks transparency on how this translates to predictable revenue
- 06MINORLow franchise fee ($4,000) may indicate weak franchisor support infrastructure or inability to invest in franchisee success
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.