What law governs matters relating to arbitration for The Standardx franchise agreements?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. Sections 1 et seq.). Except to the extent governed by the Federal Arbitration Act**,** the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law, this Agreement, the franchise, and all claims arising from the relationship between Hyatt (and/or any of its Affiliates) and Franchisee will be governed by the laws of the State of Illinois, without regard to its conflict of laws rules, except that any Illinois law regulating the offer or sale of franchises, business opportunities, or similar interests, or governing the relationship between a franchisor and a franchisee or any similar relationship, will not apply unless its jurisdictional requirements are met independently without reference to this Section 14.2.
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 Federal Arbitration Act (9 U.S.C. Sections 1 et seq.) governs all matters relating to arbitration. This means that any disputes between The Standardx and a franchisee that proceed to arbitration will be subject to the rules and procedures outlined in this federal law.
This has significant implications for prospective franchisees. The Federal Arbitration Act generally favors arbitration as a means of dispute resolution, and it can limit a franchisee's ability to pursue claims in court. Franchisees should familiarize themselves with the provisions of the Federal Arbitration Act to understand their rights and obligations in the event of a dispute with The Standardx.
It's important to note that while the Federal Arbitration Act governs arbitration proceedings, other laws may apply to the franchise agreement itself. For example, the laws of the State of Illinois govern the franchise agreement, the franchise, and all claims arising from the relationship between Hyatt (and/or any of its Affiliates) and Franchisee, except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law. Franchisees should carefully review the franchise agreement and consult with an attorney to understand which laws apply to their specific situation.