What specific addendum is included in the Gold Star Franchise Disclosure Document for the state of Indiana?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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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- 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:
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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.
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- Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Indiana Franchise 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, are met independently without reference to this Amendment.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Exhibit H contains an addendum to the Gold Star Chili Franchise Agreement that is required by the state of Indiana. This addendum addresses requirements outlined in 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.
Specifically, the addendum modifies certain sections of the standard franchise agreement to comply with Indiana law. Section 1 of the agreement, concerning the "Grant of Franchise," is supplemented with subsection 1.7, ensuring that Gold Star will not compete unfairly with the franchisee within a reasonable area surrounding the approved location. Additionally, Section 22.1 of the agreement is entirely deleted and replaced.
Furthermore, Section 22 of the agreement, which covers "Choice of Law; Jurisdiction; Limitation of Claims," is supplemented with subsection 22.7. This addition states that any provision in the agreement limiting litigation for breach of contract will be void to the extent that it violates the Indiana Deceptive Franchise Practices Act. The addendum clarifies that each provision is effective only if the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act are independently met.
This addendum ensures that Gold Star's franchise agreement adheres to Indiana's specific franchise laws, providing additional protections to franchisees operating in that state. Prospective franchisees in Indiana should carefully review Exhibit H to understand their rights and how the standard franchise agreement is modified to comply with Indiana law.