Against which franchisees did The Standardx bring a claim during the 2024 fiscal year?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
During the 2024 fiscal year, we brought a claim against franchisees as follows:
Hyatt Franchising, L.L.C. v. Imperial Hotels, LLC, Sunikumar Patel, Akash Maheshwari, Roshni Jariwala Desai, Madhvan Nair, Daksha Patel, Sanjay Desai, Raj Gandhi, Usha Patel, Vinod Jayrambhai Patel and Mina Jariwala, No. 01-24-0008-8964 (AAA 2024) (Unpaid Royalty Fees).
Other than as described above, no litigation is required to be disclosed in this Item.
Source: Item 3 — Litigation (FDD page 16)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, during the 2024 fiscal year, Hyatt Franchising, L.L.C. brought a claim against franchisees: Imperial Hotels, LLC, Sunikumar Patel, Akash Maheshwari, Roshni Jariwala Desai, Madhvan Nair, Daksha Patel, Sanjay Desai, Raj Gandhi, Usha Patel, Vinod Jayrambhai Patel and Mina Jariwala. The claim, filed under No. 01-24-0008-8964 (AAA 2024), concerned unpaid royalty fees.
This disclosure is important for potential franchisees as it provides insight into the types of legal claims The Standardx has pursued against its franchisees. Understanding the nature of past litigation, such as claims for unpaid royalty fees, can help a prospective franchisee assess the financial and legal risks associated with investing in The Standardx franchise.
It is also worth noting that the FDD states that other than the described litigation, no other litigation is required to be disclosed in Item 3. This suggests that the mentioned case was the only significant legal action The Standardx took against its franchisees during the specified period. A prospective franchisee should consider this information alongside other factors, such as the franchisor's history of franchisee relations and the overall financial health of the franchise system, to make an informed decision.