What must The Standardx franchisees do with fictitious business name registrations relating to the Proprietary Marks after termination?

According to The Standardx's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, franchisees must cancel all fictitious, assumed, or other business name registrations relating to the franchisee's use of The Standardx's Proprietary Marks. This requirement is part of the broader de-identification process that franchisees must undertake to ensure the hotel is no longer identified as a The Standardx branded hotel.

This obligation is designed to protect The Standardx's brand and prevent any confusion among customers, vendors, or other parties who might mistakenly believe the hotel is still affiliated with The Standardx. By canceling these registrations, the franchisee ensures that they no longer have any legal basis to operate under a name that includes The Standardx's trademarks.

Failure to comply with this de-identification requirement, including the cancellation of fictitious business name registrations, can result in penalties. The Standardx can require the franchisee to pay a royalty fee of $5,000 per day until de-identification is completed to The Standardx's satisfaction. Additionally, The Standardx's representatives are permitted to enter the hotel to complete the de-identification process at the franchisee's expense.

Prospective franchisees should understand the importance of these post-termination obligations and factor in the potential costs and efforts required to comply with them. Ensuring timely and complete de-identification is crucial to avoid costly penalties and maintain a smooth transition after the franchise agreement ends.