If a law requires more notice for termination than The Standardx agreement, what happens?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
18.2 Severability and Interpretation. Except as expressly provided to the contrary in this Agreement (including in Section 14.1), each section, subsection, paragraph, term, and provision of this Agreement is severable, and if, for any reason, any part is held to be invalid or contrary to or in conflict with any applicable present or future law or regulation in a final, unappealable ruling issued by any court, agency, or tribunal with competent jurisdiction, that ruling will not impair the operation of, or otherwise affect, any other portions of this Agreement, which will continue to have full force and effect and bind the parties. If any applicable and binding law or rule of any jurisdiction requires more notice than this Agreement requires of this Agreement's termination or of Hyatt's refusal to offer Franchisee the Successor Franchise Right, or some other action that this Agreement does not require, or if, under any applicable and binding law or rule of any jurisdiction, any provision of this Agreement or any System Standard is invalid, unenforceable, or unlawful, the notice and/or other action required by the law or rule will be substituted for the comparable provisions of this Agreement, and Hyatt may modify the invalid or unenforceable provision or System Standard to the extent required to be valid and enforceable or delete the unlawful provision in its entirety. Franchisee agrees to be bound by any promise or covenant imposing the maximum duty the law permits that is subsumed within any provision of this Agreement, as though it were separately articulated in and made a part of this Agreement.
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 is designed to adapt to local laws. Specifically, if any applicable law or rule requires more notice for termination than the agreement stipulates, the requirements of that law will take precedence. The Standardx will substitute the legally required notice period for the one specified in the franchise agreement.
Furthermore, The Standardx has the option to modify any provision of the agreement or any System Standard to ensure it is valid and enforceable under the governing laws. If a provision is deemed unlawful, The Standardx can delete it entirely. This ensures that the franchise agreement remains compliant with local regulations without invalidating the entire contract.
This clause also states that the franchisee agrees to fulfill the maximum duty permitted by law within any provision of the agreement. This means that even if a specific requirement isn't explicitly detailed, the franchisee is expected to adhere to the highest standard legally required, as if it were specifically written into the agreement. This provides The Standardx with some protection by ensuring franchisees meet at least the minimum legal requirements, even if the contract language is less specific.