Besides the described litigation, is there any other litigation required to be disclosed in Item 3 for The Standardx?

According to The Standardx's 2025 Franchise Disclosure Document, Item 3, which covers litigation, states that besides the claim brought against franchisees during the 2024 fiscal year, no other litigation is required to be disclosed. The specific claim mentioned is 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).

This statement indicates that The Standardx is not involved in any other ongoing or past litigation that would be considered material to prospective franchisees, beyond the listed case concerning unpaid royalty fees. Franchise Disclosure Documents typically require franchisors to disclose any litigation that could significantly impact the franchise system or a franchisee's investment. The absence of other disclosed litigation suggests a relatively clean legal record for The Standardx, which could be viewed positively by potential franchisees.

However, it is important for a prospective franchisee to understand the details of the disclosed litigation. While the FDD mentions the case and its subject matter (unpaid royalty fees), it does not provide specifics about the current status, potential outcomes, or financial implications. A potential franchisee should inquire about the details of this case to fully understand any potential risks or liabilities associated with it. They should also consider consulting with a legal professional to assess the implications of the disclosed litigation on their investment decision.