What is the deadline for a The Standardx franchisee to satisfy a final judgment?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ficial for any portion of its property or the Hotel; takes any corporate or other action to authorize any of the actions set forth above in this Section 15.2(a); has any case, proceeding, or other action commenced against it as debtor seeking an order for relief, or seeking reorganization, arrangement, adjustment, liquidation, dissolution, or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization, or relief of debtors, or seeking appointment of a receiver, trustee, custodian, or other official for it or any portion of its property or the Hotel, and such case, proceeding, or other action results in an order for relief against it that is not fully stayed within seven (7) business days after being entered or remains un-dismissed for forty-five (45) days; has an attachment of Fifty Thousand
Dollars ($50,000) or more on all or any part of the Hotel or any of its assets that remains for at least ninety (90) days; or fails, within sixty (60) days after the entry of a final judgment against it in any amount exceeding One Hundred Thousand Dollars ($100,000), to discharge, vacate, or reverse the judgment, to stay its execution, or, if appealed, to discharge the judgment within thirty (30) days after a final adverse decision in the appeal;
- (b) Franchisee ceases operating the Hotel at the Site in affiliation with the Proprietary Marks, fails to identify the Hotel to the public as a Brand Hotel, or loses possession of or the right to possess all or a significant part of the Hotel, for any reason except as otherwise provided in this Agreement;
- (c) Franchisee or any of its Affiliates contests in any court or other Proceeding Hyatt's or its Affiliate's ownership of all or any portion of the Hotel System or the validity of any Proprietary Mark, Copyrighted Materials, or Confidential Information, or registers or attempts to register any Proprietary Mark or a derivative thereof;
- (d) Franchisee (or any of its Owners) makes a transfer in violation
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, a franchisee has specific timeframes to address a final judgment against them, depending on the amount and whether they appeal. If a final judgment exceeding $100,000 is entered against the franchisee, they must discharge, vacate, or reverse the judgment within 60 days. Alternatively, they can stay its execution within the same 60-day period.
If the franchisee chooses to appeal the judgment, they have a shorter timeframe. In the event of an appeal, the franchisee must discharge the judgment within 30 days after a final adverse decision in the appeal. Failure to meet these deadlines can result in The Standardx terminating the franchise agreement without an opportunity for the franchisee to remedy the situation.
This clause protects The Standardx from potential financial and reputational damage caused by a franchisee's significant legal and financial troubles. It is crucial for prospective franchisees to understand these terms, as failing to meet the specified deadlines can lead to immediate termination of their franchise agreement. Franchisees should ensure they have sufficient financial resources and legal support to address any potential judgments promptly.