What condition must be met for each provision of the Gold Star Chili addendum to be effective in Indiana?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, each provision within the addendum to the franchise agreement that is specific to Indiana is only effective if the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act are independently met, without relying on the amendment itself.
In simpler terms, for any part of the Indiana-specific addendum to be valid, it must comply with Indiana's franchise laws on its own. The addendum cannot create its own jurisdiction or bypass existing legal requirements. This ensures that Gold Star franchisees in Indiana are protected by the state's franchise laws, and that the franchisor cannot use the addendum to circumvent these protections.
This requirement protects the franchisee by ensuring that the provisions of the addendum are consistent with Indiana law. It also means that if a dispute arises, the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act will take precedence.