What section of the Gold Star Chili Franchise Agreement is supplemented with an additional subsection regarding litigation for Indiana franchisees?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 22 of the Agreement, under the heading, "Choice of Law; Jurisdiction; Limitation of Claims," shall be supplemented with the addition of the following subsection 22.7, which shall be considered an integral part of this Agreement:
- "22.7 Notwithstanding the above, any provision in the Agreement which limits in any manner whatsoever litigation brought for breach of the Agreement will be void only to the extent that such provision violates the Indiana Deceptive Franchise Practices Act.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star FDD, Section 22 of the Franchise Agreement, under the heading "Choice of Law; Jurisdiction; Limitation of Claims," is supplemented with subsection 22.7 for Indiana franchisees. This new subsection addresses litigation brought for breach of the agreement.
Specifically, subsection 22.7 states that any provision in the Agreement that limits litigation for breach of the Agreement will be void only to the extent that such provision violates the Indiana Deceptive Franchise Practices Act. This means that while the Franchise Agreement generally governs legal disputes, Indiana law will take precedence if any part of the agreement conflicts with the Indiana Deceptive Franchise Practices Act regarding limitations on litigation.
This addendum ensures that Indiana franchisees are afforded the full protection of their state's franchise laws, particularly concerning their ability to pursue legal action for breaches of the franchise agreement. Prospective franchisees in Indiana should carefully review both the standard franchise agreement and this addendum to understand their rights and obligations regarding litigation.