Does the confidentiality provision in The Standardx franchise agreement survive the expiration or termination of the agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Survival. The following provisions of this Agreement shall survive termination or expiration of this Agreement regardless of the circumstances: Sections 6.5, 6.7, 7.4, 8.1, 8.3, 8.4, 11.1, 11.5, 11.6, 11.7 and 15.4 and ARTICLE IX, ARTICLE XIV, ARTICLE XVI, ARTICLE XVII and ARTICLE XVIII. Additionally, all of Hyatt's and Franchisee's obligations that by their terms or by implication are to be performed after the termination or expiration of the Term shall survive such termination or expiration.
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, certain provisions of the franchise agreement, including those pertaining to confidentiality, survive the termination or expiration of the agreement. Specifically, Section 16.4 states that certain sections and articles of the agreement remain in effect even after the agreement ends. Additionally, any obligations that are meant to be performed after the termination or expiration of the term will also continue to apply.
This means that even after a The Standardx franchise agreement ends, either through termination or expiration, the franchisee's duty to maintain confidentiality regarding certain information remains in place. This is a common practice in franchising to protect the franchisor's proprietary information, trade secrets, and other confidential data. The specific sections and articles that survive, as listed in Section 16.4, provide a clear indication of which obligations continue beyond the agreement's term.
For a prospective The Standardx franchisee, this implies a long-term responsibility to protect the franchisor's confidential information. It is important to carefully review the sections and articles mentioned in Section 16.4 to understand the full scope of these continuing obligations. Failure to comply with these provisions could result in legal action by The Standardx, even after the franchise agreement has ended.