Did The Standardx bring any claims against franchisees 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. The claim was 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 lawsuit indicates a dispute between The Standardx (Hyatt Franchising, L.L.C.) and a group of franchisees (Imperial Hotels, LLC, and associated individuals) regarding unpaid royalty fees. This type of litigation is not uncommon in franchising, as franchisors rely on royalty payments from franchisees for their revenue. Franchisees should ensure they understand the royalty payment terms and conditions outlined in the franchise agreement to avoid similar disputes.
Prospective franchisees should carefully review Item 3 of The Standardx's Franchise Disclosure Document and consider discussing this litigation with the franchisor to understand the nature of the dispute and its potential implications. Understanding the franchisor's approach to resolving conflicts with franchisees can be a crucial factor in evaluating the overall risk and opportunity associated with investing in The Standardx franchise.