Does any agreement significantly limit The Standardx's right to use or license the Copyrighted Materials?

According to The Standardx's 2025 Franchise Disclosure Document, no agreement significantly limits their right to use or license the Copyrighted Materials. The Standardx and its affiliates claim copyright protection for the Copyrighted Materials, although they have not registered these materials with the United States Copyright Office. As a franchisee, you are required to adhere to The Standardx's rules when using the Copyrighted Materials and can only use them as specified in the Franchise Agreement to operate the hotel.

The FDD emphasizes the importance of protecting The Standardx's Copyrighted Materials and Confidential Information. If a franchisee notices any infringement or challenge to the use of these materials, they must immediately notify The Standardx. The Standardx and its affiliates have the exclusive right to control any litigation or administrative proceedings related to such infringements or challenges. Franchisees are obligated to sign documents and take reasonable actions to protect The Standardx's interests in these matters, for which The Standardx will reimburse reasonable out-of-pocket costs.

However, The Standardx need not participate in the franchisee's defense or indemnify them if the franchisee is involved in any legal proceeding related to the Copyrighted Materials, especially if the proceeding is resolved unfavorably to the franchisee. The Standardx retains the right to direct franchisees to modify or discontinue using any of the Copyrighted Materials and to use substitute copyrighted items if deemed necessary. This ensures The Standardx maintains control over its brand and intellectual property, and can adapt to changing circumstances or legal requirements.