What Indiana laws necessitate the addendum to the Gold Star Chili Franchise Agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| (10,532) | | 113,759 | - | | 372,314 | | Beginning Cash Balance | _ | 168,180 | _ | 919,907 | | 130,561 | | | 1,218,648 | | Ending Cash Balance | $_ | 437,267 | $_ | 909,375 | $ | 244,320 $ | $ | · | 1,590,962 |
EXHIBIT G to FRANCHISE DISCLOSURE DOCUMENT
STATE ADMINSTRATORS
INDIANA
Secretary of State of the State of Indiana Indiana Securities Division 302 West Washington Street Room E-111 Indianapolis, IN 46204
KENTUCKY
Attorney General of the Commonwealth of Kentucky Consumer Protection Division 1024 Capital Center Drive, Suite 200 Frankfort, KY 40601
OHIO
Attorney General of the State of Ohio Consumer Protection Section 30 E. Broad Street, 14th Floor Columbus, Ohio 43215
EXHIBIT H to FRANCHISE DISCLOSURE DOCUMENT
ADDENDUM TO THE GOLD STAR CHILI FRANCHISE AGREEMENT REQUIRED BY THE STATE OF INDIANA
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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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 the state of Indiana is required to address 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.
To comply with these Indiana laws, the addendum modifies specific sections of the standard Gold Star franchise agreement. For instance, it supplements Section 1 regarding the "Grant of Franchise" by adding subsection 1.7, which ensures that Gold Star will not compete unfairly with the franchisee within a reasonable area surrounding their approved location. Additionally, Section 22.1 of the agreement is entirely deleted and replaced to align with Indiana law.
Furthermore, the addendum adds subsection 22.7 to Section 22, clarifying that any provision limiting litigation for breach of the agreement will be void if it violates the Indiana Deceptive Franchise Practices Act. The addendum also stipulates that each provision within it is only effective if the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act are independently met. This ensures that the Gold Star franchise agreement adheres to Indiana's specific regulations regarding franchise operations and franchisee protection.