What certifications, representations, and warranties does a The Standardx franchisee make regarding Trade Restriction Laws as of the Effective Date?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents and warrants that as of the Effective Date it has in place, and covenants to maintain in place throughout the Term, commercially reasonable compliance programs, policies and procedures designed to prevent any violations of, and promptly to detect any risks of violation or potential violation of, any Trade Restriction Laws, Anti-Corruption Laws or Privacy Laws, including procedures for conducting background checks on Owners and prospective Owners (other than Public Owners).
Franchisee agrees to comply, and to assist Hyatt to the fullest extent possible in its efforts to comply, with the Trade Restriction Laws, Anti-Corruption Laws and Privacy Laws.
In connection with that compliance, Franchisee (on behalf of itself and its Owners, excluding any Public Owners) certifies, represents, and warrants as of the Effective Date that none of Franchisee's nor any such Owner's property or interests is subject to being blocked under, and that Franchisee and such Owners otherwise are not in violation of, any of the Trade Restriction Laws.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees make specific representations, warranties, and certifications concerning compliance with Trade Restriction Laws as of the Effective Date of the franchise agreement. Specifically, the franchisee must have commercially reasonable compliance programs, policies, and procedures in place to prevent violations of Trade Restriction Laws, Anti-Corruption Laws, and Privacy Laws. These measures include conducting background checks on owners and prospective owners, excluding public owners. This requirement remains in effect throughout the term of the agreement.
Furthermore, the franchisee certifies, represents, and warrants that neither the franchisee nor its owners' property or interests are subject to being blocked under any Trade Restriction Laws. They also warrant that they are not in violation of any of these laws. These assurances are made on behalf of the franchisee and their owners, excluding any public owners.
Failure to comply with these Trade Restriction Laws can lead to significant consequences. If the franchisee's or any of its owners' assets, property, or interests are blocked under any Trade Restriction Law, or if the franchisee or any of its owners otherwise violate any Trade Restriction Law, it constitutes a breach of the franchise agreement. Such a breach could result in the suspension of rights and services, or even termination of the franchise agreement. The Standardx also requires franchisees to assist them in complying with Trade Restriction Laws, Anti-Corruption Laws and Privacy Laws.