In the context of The Standardx franchise, what does the term 'Franchisee's Representative' refer to?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Franchisee represents, warrants and acknowledges that, except as expressly set forth in the franchise disclosure document that Hyatt delivered to Franchisee or its representative, Franchisee has not received from Hyatt, and is not relying upon, and that Hyatt expressly disclaims making, any representation, warranty or guaranty, express or implied, as to the actual or potential volume, sales, income or profits of the Hotel or any other Brand Hotel, and any information Franchisee has acquired from other Brand Hotel owners, including information regarding their sales, profits or cash flows, is not information obtained from Hyatt, and Hyatt makes no representation about that information's accuracy.
(c) Franchisee represents, warrants and acknowledges that it has no knowledge of any representations made about the Brand Hotel franchise opportunity by Hyatt, its Affiliates or any of their respective officers, directors, managers, owners or agents that are contrary to the statements made in Hyatt's franchise disclosure document or to the terms and conditions of this Agreement.
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, the term 'Franchisee's representative' is referenced within the context of franchisee acknowledgements in certain states. Specifically, in states where franchise registration and/or disclosure laws apply (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin), the franchisee acknowledges that, except as expressly set forth in the franchise disclosure document delivered to the franchisee or its representative, the franchisee has not received from The Standardx, and is not relying upon, any representation, warranty, or guaranty as to the actual or potential volume, sales, income, or profits of the Hotel or any other Brand Hotel.
This acknowledgement is crucial because it limits The Standardx's liability regarding any projections or promises of financial performance not explicitly stated in the FDD. It also clarifies that any information the franchisee obtains from other Brand Hotel owners is not endorsed or guaranteed by The Standardx. This protects The Standardx from claims based on information outside of the official disclosure document.
Furthermore, the franchisee acknowledges that they have no knowledge of any representations made about The Standardx franchise opportunity by The Standardx, its affiliates, or their respective officers, directors, managers, owners, or agents that are contrary to the statements made in The Standardx's franchise disclosure document or to the terms and conditions of the Franchise Agreement. This provision reinforces the importance of the FDD as the primary source of information and aims to prevent misunderstandings or misinterpretations based on unofficial communications.
In essence, 'Franchisee's representative' refers to someone acting on behalf of the franchisee, who may receive the franchise disclosure document. The franchisee is responsible for ensuring that their representative understands the implications of the acknowledgements, particularly regarding the reliance on information provided by The Standardx and the absence of guarantees regarding financial performance.