What acknowledgement does The Standardx franchisee make regarding their independent investigation of the hotel industry?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Franchisee represents, warrants and acknowledges that it has independently investigated and evaluated the opportunity of investing in the hotel industry generally and specifically the Brand Hotel franchise opportunity, including the current and potential market conditions and competitive factors and risks, and recognizes that, like any other business, the nature of a Brand Hotel's business will evolve and change over time.
(b) Franchisee represents, warrants and acknowledges that, except as expressly set forth in the franchise disclosure document that Hyatt delivered to Franchisee or its representative, Franchisee has not received from Hyatt, and is not relying upon, and that Hyatt expressly disclaims making, any representation, warranty or guaranty, express or implied, as to the actual or potential volume, sales, income or profits of the Hotel or any other Brand Hotel, and any information Franchisee has acquired from other Brand Hotel owners, including information regarding their sales, profits or cash flows, is not information obtained from Hyatt, and Hyatt makes no representation about that information's accuracy.
(c) Franchisee represents, warrants and acknowledges that it has no knowledge of any representations made about the Brand Hotel franchise opportunity by Hyatt, its Affiliates or any of their respective officers, directors, managers, owners or agents that are contrary to the statements made in Hyatt's franchise disclosure document or to the terms and conditions of this Agreement.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees acknowledge that they have independently investigated and evaluated the opportunity of investing in the hotel industry. This includes assessing the Brand Hotel franchise opportunity, current and potential market conditions, competitive factors, and risks. The franchisee recognizes that the nature of a Brand Hotel's business, like any other, will evolve and change over time. This acknowledgement is made by the franchisee unless the franchise agreement is subject to state franchise registration and/or disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin.
Furthermore, the franchisee acknowledges that, except as expressly stated in the franchise disclosure document provided by Hyatt, they have not received or relied upon any representations, warranties, or guarantees from Hyatt regarding the actual or potential volume, sales, income, or profits of the Hotel or any other Brand Hotel. Any information acquired from other Brand Hotel owners is not considered information obtained from Hyatt, and Hyatt makes no representation about the accuracy of that information.
Finally, the franchisee acknowledges that they have no knowledge of any representations made about The Standardx Hotel franchise opportunity by Hyatt, its Affiliates, or their respective officers, directors, managers, owners, or agents that contradict the statements made in Hyatt's franchise disclosure document or the terms and conditions of the franchise agreement. This comprehensive acknowledgement underscores the franchisee's responsibility to conduct thorough due diligence and not solely rely on information provided by the franchisor, except as explicitly stated in the FDD.