What articles and sections of The Standardx Franchise Agreement outline the franchisee's obligations regarding fees?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| a. Site selection and | 1.1, 2.5 and 2.6 of Franchise | 7 and 11 |
| acquisition/lease | Agreement | |
| Obligation | Section | Disclosure |
| in agreement | document item | |
| b. Pre-opening purchases/leases | 2.1, 2.2, 2.5, 2.7, 3.3, 4.3, 4.4, 5.1, Article 9 and Exhibit B-1 of Franchise Agreement | 5, 7, 8 and 11 |
| c. Site development and other pre-opening requirements | 2.1 to 2.4 and Exhibit B-3 of Franchise Agreement; Revenue Management Services Program Schedule | 5, 7, 8 and 11 |
| d. Initial and ongoing training | 3.1, 3.4, 4.2 and 12.4 of Franchise Agreement | 5, 6, 7 and 11 |
| e. Opening | 2.5 of Franchise Agreement | 5 and 11 |
| f. Fees | 2.2, 2.5, 3.1, 3.3, 3.4, 4.1, 4.2, 4.4, 4.8, 5.3, 7.5, 8.3, 12.4, 12.8, 13.2, 14.4, 16.1, 16.2 and 16.5 and Articles 3, 6, 9 and 10 and Exhibit B-1 of Franchise Agreement; Franchise Application; 7 of Confidentiality Agreement; Schedules to Central Services Agreement | 5, 6, 7, 8 and 11 |
| g. Compliance with standards and policies/operating manual | 2.1 to 2.3, 2.6, 3.2, 3.3, 5.1, 5.3, 5.4, 7.4 and 11.2 and Article 4 of Franchise Agreement; Management Company Rider | 6, 8, 11, 13, 14 and 15 |
| h. Trademarks and proprietary information | 3.2, 5.3 and 16.1 and Article 11 of Franchise Agreement; Confidentiality Agreement; Management Company Rider; 6 of Central Services Agreement | 11, 13 and 14 |
| i. Restrictions on | 4.1, 4.3, 4.4, 4.5 and 4.6 of Franchise | 8, 11 and 16 |
| products/services offered | Agreement | |
| j. Warranty and customer | 4.3 and 4.5 of Franchise Agreement | 8, 12 and 16 |
| service requirements | ||
| k. Territorial development and | Not applicable | Not applicable |
| sales quotas | ||
| l. Ongoing product/service purchases | 3.2, 3.3, 4.1, 4.3, 4.4, 4.5, and 4.6 of Franchise Agreement; Schedules to Central Services Agreement | 5, 6, 7, 8 and 11 |
| m. Maintenance, appearance and remodeling requirements | 3.2, 4.3, 4.4, 4.6, 4.7, 4.8 and 10.2 of Franchise Agreement | 8, 11 and 16 |
| n. Insurance | Article 9 of Franchise Agreement; 8 of Central Services Agreement | 6, 7 and 8 |
| Obligation | Section | Disclosure |
| in agreement | document item | |
| o. Advertising | 4.1, 4.3, 4.5 and Article 5 of Franchise Agreement | 6, 8 and 11 |
| p. Indemnification | 2.5 and 8.3 of Franchise Agreement; 7 of Confidentiality Agreement; 9 of Central Services Agreement | 6 |
| q. Owner’s participation/ management/staffing | 3.1, 3.2, 4.2 and 4.6 of Franchise Agreement; Management Company Rider; Revenue Management Services Program Schedule | 5, 7, 11 and 15 |
| r. Records and reports | 4.3 and 4.7 and Article 7 of Franchise Agreement | 6 |
| s. Inspections and audits | 4.3, 4.8, 7.4 and 7.5 of Franchise Agreement | 6 |
| t. Transfer | 12.2 to 12.9 of Franchise Agreement and 8(e) of Confidentiality Agreement; 13 of Central Services Agreement | 6 and 17 |
| u. Renewal | Article 13 of Franchise Agreement | 6 and 17 |
| v. Post-termination obligations | 12.4 and Articles 10, 14 and 16 of Franchise Agreement; 6 and 9 of Central Services Agreement | 6, 13, 14 and 17 |
| w. Non-competition covenants | 4.2, 4.10 and 4.11 of Franchise Agreement | 15 and 17 |
| x. Dispute resolution | Article 14 of Franchise Agreement; 8 of Confidentiality Agreement; 11 of Central Services Agreement | 6 and 17 |
| y. Honoring guest room rates | 3.3 and 4.5 of Franchise Agreement | 8 |
| z. Guarantor Monetary | 12.1 of Franchise Agreement and | 15 |
| Threshold | Guaranty | |
| aa. Right of first offer | Exhibit C of Franchise Agreement | 17 |
Source: Item 9 — Franchisee's Obligations (FDD pages 45–48)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including those pertaining to fees. The table within Item 9 indicates that the sections and articles of the Franchise Agreement that detail the franchisee's obligations regarding fees are extensive.
Specifically, the franchisee's obligations regarding fees are covered in sections 2.2, 2.5, 3.1, 3.3, 3.4, 4.1, 4.2, 4.4, 4.8, 5.3, 7.5, 8.3, 12.4, 12.8, 13.2, 14.4, 16.1, 16.2 and 16.5, as well as Articles 3, 6, 9, and 10, and Exhibit B-1 of the Franchise Agreement. Additional details can be found in the Franchise Application, section 7 of the Confidentiality Agreement, and the Schedules to the Central Services Agreement.
These numerous references suggest that fee obligations are addressed throughout various aspects of the franchise relationship, from initial setup to ongoing operations and potential termination. Prospective franchisees should carefully review each of these sections and exhibits to fully understand their financial responsibilities to The Standardx.