Where in The Standardx Franchise Agreement is a sentence added regarding limitations of claims?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------------------------------------------------------|-----------------------------------------------------------------------------------| | and between, a ("Franchisee") and the | | | franchisor entity set forth in Exhibit C ("Hyatt"). | | | | | | 1. | Background. Hyatt and Franchisee are parties to that certain Franchise Agreement | | dated, 2025 that has been signed concurrently with the signing of | | | this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is | | | being signed because (a) Franchisee is a resident of Maryland, or (b) the Brand Hotel will be | | | located or operated in Maryland. | | | 2. | Releases. The following language is added to the end of Sections 10, 12.4(e) and | | 13.3 of the Franchise Agreement: | | | ; provided, however, that such general release shall not apply to any liability under | | | the Maryland Franchise Registration and Disclosure Law. | | | 3. | Dispute Resolution. The following sentence is added to the end of the first | | paragraph of Section 14.1: | | | Franchisee may, subject to any arbitration obligations, bring an action in Maryland | | | for claims arising under the Maryland Franchise Registration and Disclosure Law | | | to the extent required by the Maryland Franchise Registration and Disclosure Law, | | | unless preempted by the Federal Arbitration Act. | | | 4. | Governing Law. The following sentence is added to the end of Section 14.2: | | However, to the extent required by applicable law, Maryland law will apply to | | | claims arising under the Maryland Franchise Registration and Disclosure Law. | | | 5. | Limitations of Claims. The following sentence is added to the end of Section 14.6 | | of the Franchise Agreement: | | | , except that any and all claims arising under the Maryland Franchise Registration | | | and Disclosure Law must be brought within three (3) years after the grant of the | | | Franchise. | | | 6. | Acknowledgements. The following language is added to the end of Article XIX of | | the Franchise Agreement: | |
Such representations are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and
Disclosure Law.
IN WITNESS WHEREOF, the parties have signed this Rider as of the dates set forth by their signatures, to be effective as of the Effective Date (regardless of the dates of the parties' signatures).
[ENTITYNAMECAPS] [FRANCHISOR ENTITY]
RIDER TO THE HYATT FRANCHISING, L.L.C. CONFIDENTIALITY AGREEMENT FOR USE IN MARYLAND
This Rider is made as of this day of,, by and between , a[n] , whose address is ("Company") and HYATT FRANCHISING, L.L.C., a Delaware limited liability company, whose address is 150 North Riverside Plaza, Chicago, Illinois 60606 ("Hyatt"). 1. Hyatt and Company are parties to that certain Confidentiality Background. Agreement dated, 2025 that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Confidentiality Agreement. This Rider is being signed because (a) Franchisee is a resident of Maryland, or (b) the Brand Hotel will be located or operated in Maryland. 2. Governing Law. The following sentence is added to the end of Sections 13 and 14 of the Confidentiality Agreement: However, to the extent required by applicable law, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law. IN WITNESS WHEREOF, the parties have executed this Rider on the day and year first above written. HYATT FRANCHISING, L.L.C., a Delaware limited liability company
**RIDER TO THE HYATT FRANCHISING, L.L.C.
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 franchise agreement includes clauses that address the limitation of claims, with specific modifications depending on the franchisee's location. For franchisees in Maryland, a sentence is added to the end of Section 14.6 of the Franchise Agreement, stipulating that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Similarly, for franchisees in North Dakota, a sentence is added to the end of Section 14.6, noting that the time limitations set forth in that section might be modified by the North Dakota Franchise Investment Law.
For franchisees operating under Minnesota law, a sentence is added to the end of Section 14.6 of the Franchise Agreement, stating that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three years after the cause of action accrues.
In general, Section 14.6 of the Franchise Agreement states that, except for claims arising from the franchisee's non-payment or underpayment of amounts owed to The Standardx, any claims relating to the agreement or The Standardx's relationship with the franchisee will be barred unless a legal proceeding is commenced within eighteen months from the date the party asserting the claim knew or should have known of the facts giving rise to the claims. These limitations of claims provisions are important for prospective franchisees to understand, as they define the timeframe within which legal action must be taken, and they vary based on the specific state laws governing the franchise agreement.