What agreement does the Indiana Rider amend for Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
INDIANA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Goldmember, LLC, a Idaho limited liability company ("Crown Gold Franchising") and, a ("Franchisee").
- **1.
Definitions.** Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
The "Indiana Acts" means the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
- **2.
Certain Provisions Modified.** Any provision of the Agreement which would have any of the following effects is hereby modified to the extent required for the Agreement to be in compliance with the Indiana Acts:
- (1) Requiring goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by the franchisor where such goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor.
However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services or the requirement that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor does not constitute designation of a source nor does a reasonable right of the franchisor to disapprove a supplier constitute a designation.
This subdivision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by the franchisor.
(2) Allowing the franchisor to establish a franchisor-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted the franchisee by the franchise agreement; or, if no exclusive territory is designated, permitting the franchisor to compete unfairly with the franchisee within a reasonable area.
(3) Allowing substantial modification of the franchise agreement by the franchisor without the consent in writing of the franchisee.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the Indiana Rider specifically amends the Franchise and Multi-Unit Development Agreement. This agreement is dated and made between Goldmember, LLC, identified as Crown Gold Franchising, and the franchisee.
The Indiana Rider modifies certain provisions of the Franchise and Multi-Unit Development Agreement to ensure compliance with Indiana state laws, namely the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act. These modifications address aspects such as purchasing goods and services, franchisor-owned outlets within the franchisee's territory, and substantial modifications to the franchise agreement.
Specifically, the rider ensures that franchisees are not required to purchase goods exclusively from the franchisor if comparable quality goods are available elsewhere. It also addresses the franchisor's ability to establish competing outlets within the franchisee's exclusive territory and restricts the franchisor from making substantial modifications to the agreement without the franchisee's written consent. These stipulations protect the franchisee's interests and ensure fair practices within the franchise relationship, as governed by Indiana law.