factual

Does the Gold Star Chili addendum independently establish jurisdictional requirements for Indiana franchise law?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2.5-1 to 23-2-2.5-51 and the Indiana Deceptive Franchise Practices Act, Indiana Code §§ 23-2-2.7-1 to 23-2-2.7-7, are met independently without reference to this Amendment.

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, the addendum to the franchise agreement for Indiana addresses the state's franchise laws. Specifically, Section 4 of the addendum states that each provision within it is effective only to the extent that the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act are met independently, without relying on the addendum itself.

In simpler terms, this means that the protections and modifications outlined in the Indiana addendum to the Gold Star franchise agreement only apply if the underlying requirements of Indiana's franchise laws are already satisfied. The addendum doesn't create those jurisdictional requirements; it merely acknowledges that it is subject to them.

For a prospective Gold Star franchisee in Indiana, this clause ensures that the franchisor cannot use the addendum to circumvent or bypass any mandatory requirements of Indiana franchise law. It reinforces that Gold Star must still comply with all applicable Indiana laws, regardless of what the addendum says. This provides an additional layer of protection for the franchisee, as the addendum's provisions are contingent upon meeting the state's legal standards.

This type of clause is not uncommon in franchise agreements, particularly when dealing with states that have specific franchise laws. It serves to clarify that the franchise agreement and any state-specific addenda are intended to work in conjunction with, and not in place of, existing state regulations. Franchisees should always consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and applicable state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.