Where can I find the definition of 'Area of Protection' within The Standardx franchise agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT A to the BRAND HOTEL FRANCHISE AGREEMENT
DEFINED TERMS
In addition to any other terms defined in this Agreement, the following terms shall have the respective meanings as indicated below.
- "Accessibility Laws" means the Americans with Disabilities Act and other laws, rules, regulations and ordinances governing accommodations for or relationships with persons with disabilities or similar individuals, as in effect from time to time.
- "ADS" means the online travel agencies and other alternative distribution systems that Hyatt may periodically authorize or require for Franchisee's Hotel and other similarly situated Brand Hotels (subject to Reasonable Deviations).
- "Affiliate" means, with respect to a party, any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party. For purposes of this definition, "control" means the power to direct or cause the direction of management and policies.
- "Anti-Corruption Laws" means any laws, rules or regulations relating to anti-corruption, anti-bribery, anti-money laundering, or similar prohibited conduct or otherwise relating to the maintenance of accurate books and records and internal controls.
- "AOP Term" has the meaning set forth in Exhibit B-2.
- "Area of Protection" has the meaning set forth in Exhibit B-2.
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 definition of "Area of Protection" can be found in Exhibit B-2 of the Brand Hotel Franchise Agreement. Additionally, Exhibit A to the Brand Hotel Franchise Agreement defines several terms used within the agreement, and it also specifies that "Area of Protection" has the meaning set forth in Exhibit B-2. This means that to fully understand the scope and limitations of your protected area as a The Standardx franchisee, you must refer to Exhibit B-2 of the franchise agreement.
The FDD also indicates that the franchisee's rights within the Area of Protection are limited to the AOP Term, which is also defined in Exhibit B-2. After the AOP Term concludes, The Standardx has the right to operate or authorize others to operate hotels within the former Area of Protection. This highlights the importance of understanding the duration and specific conditions outlined in Exhibit B-2 regarding the Area of Protection.
Prospective franchisees should carefully review Exhibit B-2 and understand the length of the AOP term, the geographic boundaries of the Area of Protection, and any conditions or exceptions that could impact their exclusive rights. It is also important to understand what happens after the AOP Term expires and how that could affect the long-term potential of the franchise.