What is the extended duration of confidentiality for Hyatt Trade Secrets under The Standardx's FDD?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise set forth herein, the obligations set forth in this Agreement shall terminate upon the execution of definitive agreements between the parties with respect to the Transaction or two (2) years from the date of this Agreement, whichever occurs first; provided, however, that notwithstanding the termination of this Agreement, the confidentiality obligations of the Company with respect to a Hyatt Trade Secret shall continue until the later of (i) five (5) years from the date of this Agreement, and (ii) until such time that Hyatt has provided notice that the Hyatt Trade Secret is no longer deemed by Hyatt to be a trade secret.
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 confidentiality obligations regarding Hyatt Trade Secrets extend beyond the termination of the agreement. Specifically, the confidentiality continues for a duration that is the later of two conditions: either five years from the date of the agreement, or until Hyatt provides notice that the trade secret is no longer considered a trade secret.
For a prospective The Standardx franchisee, this means that even after the franchise agreement ends, they must maintain the confidentiality of Hyatt's Trade Secrets. This obligation lasts for at least five years, but could potentially be indefinite if Hyatt never releases the trade secret.
This extended confidentiality period is a significant consideration for franchisees, as it restricts their ability to use or disclose certain information, potentially impacting future business ventures. Franchisees should carefully consider the scope and nature of the confidential information to fully understand the implications of this ongoing obligation.