For The Standardx franchise, how is the Area of Protection defined?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| of: (a) the date which is (_) years after the Opening Date; and (b), 20 |
|---|
| "Area of Protection" means the geographic area contained by the following borders: |
| |
| [Insert line-by-line description of Area of Protection borders] |
| The Area of Protection is depicted on the map attached below. If there is an inconsistency |
| between the foregoing written description and the attached map, the written description shall |
| control. |
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 Area of Protection (AOP) is defined by specific geographic borders, as detailed in Exhibit B-2 of the franchise agreement. These borders are described line-by-line. A map depicting the AOP is attached, but in case of any inconsistency between the written description and the map, the written description will take precedence. The AOP Term refers to the period beginning on the Effective Date and ending either a specific number of years after the Opening Date or in 20XX, whichever comes first, as specified in Exhibit B-2.
During the AOP Term, The Standardx agrees not to open or authorize any other party to open another Brand Hotel within the Area of Protection. However, there is an exception: if The Standardx or its affiliates acquire a group of at least four hotels, one or more of which are in the Area of Protection, they have the right to convert those acquired hotels to operate under the Proprietary Marks, even if other acquired hotels are not converted.
After the AOP Term, the franchisee loses all territorial protection, and The Standardx and its affiliates can operate or authorize others to operate Brand Hotels within the former Area of Protection. The franchisee's rights within the Area of Protection are limited to the AOP Term, and the franchise agreement is nonexclusive in all other respects. The Standardx retains the right to engage in any activities, including those that compete with the Hotel, at any time and place. The Standardx and its affiliates may also operate other franchised and non-franchised systems that compete directly with the franchisee, even within the Area of Protection during the AOP Term. They may also use common systems and services that benefit competing hotels, without the franchisee having any recourse for claims or damages.