What is the heading of the section in the Gold Star franchise agreement that is supplemented by subsection 22.7?

According to the 2025 Gold Star Franchise Disclosure Document, Section 1 of the Franchise Agreement, under the heading "Grant of Franchise," is supplemented by subsection 1.7 in the state of Indiana. This addition is required due to 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 added subsection 1.7 states "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."

This means that for Gold Star franchises operating in Indiana, the franchisor agrees not to unfairly compete with the franchisee within a reasonable area around their location. This provides an additional layer of protection for the franchisee's investment and business operations within their designated territory. This clause aims to prevent the franchisor from opening another Gold Star location or engaging in business practices that would directly undermine the franchisee's customer base and revenue.

Prospective franchisees in Indiana should understand the implications of this clause and how it affects their rights and the franchisor's obligations. While the clause provides protection against unfair competition, the term "reasonable area" is not explicitly defined, which could lead to potential disputes. It would be prudent for potential franchisees to seek legal counsel to clarify the scope and enforceability of this provision within the context of their specific franchise agreement and location.