factual

Where is dispute resolution by arbitration or mediation addressed in The Standardx franchise and related agreements?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in franchise or other agreement Summary
n. Franchisor's right of first refusal to acquire franchisee's business 1.5 and Exhibit C of Franchise Agreement We only have right of first offer on transfers of the Hotel or a Controlling Ownership Interest in you if we and you sign Exhibit C. We will require Exhibit C only for certain markets that we determine are strategic to us.
o. Franchisor's option to purchase franchisee's business Not applicable Not applicable.
p. Death or disability of franchisee 12.7 of Franchise Agreement Upon death or incompetence of owner of a Controlling Ownership Interest in you or your controlling owner, representative must transfer to approved transferee within 6 months.
q. Non-competition covenants during the term of the franchise 4.2, 4.10 and 4.11 of Franchise Agreement No covenant not to compete, but neither you nor Hotel management company may be a Competing Brand Owner.
r. Non-competition covenants after the franchise is terminated or expires Not applicable Not applicable.
s. Modification of the agreement 18.5 of Franchise Agreement; 15 of Central Services Agreement Only writing signed by duly-authorized officers may modify agreement, but we may change Hotel System, System Standards, System Services, and services (and related prices) provided under the schedules to the Central Services Agreement.
t. Integration/merger clause 18.5 of Franchise Agreement; 8(f) of Confidentiality Agreement; 14 of Central Services Agreement Only terms of Franchise Agreement, Confidentiality Agreement and Central Services Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and those agreements may not be enforceable.
u. Dispute resolution by arbitration or mediation 14.1 of Franchise Agreement; 11 of Central Services Agreement We and you must arbitrate all disputes at a location the arbitrator chooses within 10 miles of our then current principal business address (currently Chicago, Illinois).
v. Choice of forum 14.3 of Franchise Agreement; 11 of Central Services Agreement Subject to arbitration obligation and state law, litigation generally must be in our home state (currently Illinois).

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)

What This Means (2025 FDD)

According to The Standardx's 2025 Franchise Disclosure Document, dispute resolution through arbitration or mediation is addressed in Section 14.1 of the Franchise Agreement and Section 11 of the Central Services Agreement. This means that any disputes between The Standardx and the franchisee will be subject to arbitration or mediation as outlined in these sections.

The FDD specifies that arbitration will take place at a location chosen by the arbitrator within 10 miles of The Standardx's principal business address, which is currently in Chicago, Illinois. This is a notable point for prospective franchisees, as it mandates that they engage in dispute resolution in Chicago, potentially incurring travel and legal costs regardless of their franchise location.

Furthermore, the choice of forum for litigation, subject to the arbitration obligation and state law, is generally in Illinois, which is The Standardx's home state. This clause, along with the arbitration requirement, emphasizes that franchisees may need to handle legal matters in Illinois, potentially adding complexity and expense to any legal disputes. The choice of law is also specified as Illinois law, except for the Federal Arbitration Act and other federal laws, and subject to state law, further solidifying Illinois as the primary legal jurisdiction governing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.