What section of the Gold Star franchise agreement regarding competition is being deleted and replaced?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD 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 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)
According to Gold Star's 2025 Franchise Disclosure Document, Exhibit H outlines an addendum to the franchise agreement required by the state of Indiana. Specifically, Section 22.1 of the agreement, which likely pertains to competition, is being completely removed and replaced with a new provision.
For a prospective Gold Star franchisee in Indiana, this means that the standard franchise agreement is modified to comply with Indiana state laws regarding fair competition and deceptive franchise practices. The original Section 22.1 is deemed unenforceable in Indiana and is superseded by the new language in the addendum.
It is important for potential franchisees in Indiana to carefully review Exhibit H and understand the implications of the substituted section. They should compare the original Section 22.1 (if available) with the new language to fully grasp the changes in their rights and obligations regarding competition with Gold Star. Consulting with an attorney is advisable to ensure a clear understanding of these legal modifications.