For Gold Star franchises, what is the status of loan closing cost registration in Indiana?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Indiana 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, the parties to the attached Gold Star Chili, Inc. Franchise Agreement (the "Agreement") agree as follows:
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- Section 1 of the Agreement, under the heading "Grant of Franchise," shall be supplemented by the following subsection 1.7, which shall be considered an integral part of the Agreement:
- "C. No Unfair Competition. Licensor agrees that it shall not compete unfairly with Licensee within a reasonable area surrounding the approved location of the licensed location."
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- Section 22.1 of the Agreement shall be deleted in its entirety, and shall have no force or effect; and the following shall be substituted in lieu thereof:
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
Based on the 2025 Gold Star Franchise Disclosure Document, the document does not provide specific information regarding the registration status of loan closing costs in Indiana. However, the FDD does include an addendum specific to Indiana, addressing certain legal requirements within the state related to franchise agreements and practices. This addendum modifies sections of the standard franchise agreement to comply with Indiana law, particularly concerning unfair competition and limitations on litigation. The FDD also lists the state administrator for Indiana, which is the Indiana Securities Division, suggesting that Gold Star has taken steps to comply with Indiana's franchise regulations.
While the FDD mentions Indiana's franchise disclosure and deceptive practices laws, it does not explicitly detail whether loan closing costs require registration. The presence of a state-specific addendum indicates that Gold Star acknowledges and addresses specific legal requirements in Indiana. The addendum includes clauses that modify the franchise agreement to align with Indiana law, such as preventing unfair competition within a franchisee's territory and addressing limitations on litigation.
Prospective franchisees in Indiana should note that while the FDD provides an overview of franchise regulations and modifications to the franchise agreement, it does not cover every aspect of doing business in the state. Given the absence of specific information on loan closing cost registration, it is crucial for potential Gold Star franchisees to seek clarification from Gold Star directly or consult with legal and financial professionals familiar with Indiana's franchise and financial regulations. This will ensure full compliance and a clear understanding of all costs associated with establishing a franchise in Indiana.
In summary, the Gold Star FDD provides a foundation for understanding franchise operations in Indiana, but further inquiry is needed to determine the specific requirements for loan closing cost registration. Prospective franchisees should use the resources listed in the FDD, such as the state administrator, and seek independent advice to ensure they are fully informed.