What is the franchisee acknowledging regarding their statements and materials provided to Hyatt for The Standardx franchise?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
in obtaining those rights;
- (c) Franchisee is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, and Franchisee's execution and delivery of this Agreement and performance of its obligations hereunder (i) have been duly authorized by all necessary company action, (ii) do not and will not violate or result in a breach or default
under any applicable law or any agreement to which Franchisee is a party or by which it is bound, and (iii) do not require the consent of any third party that has not been obtained; and
- (d) In accordance with an exemption available under the Federal Trade Commission's Trade Regulation Rule entitled "Disclosure Requirements and Prohibitions Concerning Franchising," 16 C.F.R. Section 436.8(a)(5)(ii), Franchisee, or its parent or any of its Affiliates, is an entity that has been in business for at least five (5) years and has a net worth of at least $7,348,000.
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, franchisees acknowledge the accuracy and completeness of all statements and materials provided to Hyatt. Specifically, to encourage Hyatt to enter into the franchise agreement, the franchisee confirms that all statements and materials, including ownership information and descriptions of the franchisee's or its affiliates' ownership structures, are accurate and complete. The franchisee also confirms that there have been no misrepresentations or material omissions in obtaining the franchise rights.
This acknowledgement is crucial for Hyatt, as it relies on the information provided by the franchisee to make informed decisions about granting the franchise. By signing the agreement, the franchisee warrants that they are duly organized, validly existing, and in good standing under the laws of their jurisdiction. They also confirm that their execution and delivery of the agreement, as well as their performance of obligations, have been duly authorized and do not violate any applicable laws or agreements.
This provision protects Hyatt from potential legal issues arising from inaccurate or incomplete information provided by the franchisee. However, in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, franchisees are protected by state franchise laws that prevent waivers of claims or disclaimers of reliance on statements made by Hyatt or its representatives. This ensures that franchisees in these states retain their rights and protections under state franchise laws, regardless of any acknowledgements made in the franchise agreement.