If there is more than one Assignee, what must the Assignees do regarding notices and negotiations for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
provided further that, in the event there is more than one Assignee, such Assignees shall have (y) designated one representative to receive notices, negotiate on behalf of and bind each such Assignee in connection with this Comfort Letter and any Assignment thereof, and (z) acknowledged that Hyatt shall be entitled to rely on such designation and deal solely with such representative without the necessity of notifying, negotiating with, or obtaining the consent of, each such Assignee.
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, if there is more than one Assignee, they must designate one representative. This representative is authorized to receive notices, negotiate, and make binding decisions on behalf of all Assignees concerning the Comfort Letter and any related assignments. The Standardx (Hyatt) is entitled to rely solely on this designated representative, without needing to notify, negotiate with, or obtain consent from each individual Assignee.
This requirement streamlines communication and decision-making when multiple parties hold interest in the loan documents. By designating a single point of contact, The Standardx ensures efficient handling of notices and negotiations, avoiding potential delays or conflicts that could arise from dealing with multiple entities separately.
For a prospective The Standardx franchisee, this clause clarifies the process if the lender assigns the Comfort Letter to multiple Assignees. It ensures that The Standardx only needs to communicate and negotiate with one designated representative, simplifying the process and preventing potential complications from dealing with numerous parties.