factual

What is the name of the plaintiff in the litigation against franchisees involving The Standardx?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

During the 2024 fiscal year, we brought a claim against franchisees as follows:

Hyatt Franchising, L.L.C. v. Imperial Hotels, LLC, Sunikumar Patel, Akash Maheshwari, Roshni Jariwala Desai, Madhvan Nair, Daksha Patel, Sanjay Desai, Raj Gandhi, Usha Patel, Vinod Jayrambhai Patel and Mina Jariwala, No. 01-24-0008-8964 (AAA 2024) (Unpaid Royalty Fees).

Other than as described above, no litigation is required to be disclosed in this Item.

Source: Item 3 — Litigation (FDD page 16)

What This Means (2025 FDD)

According to The Standardx's 2025 Franchise Disclosure Document, Hyatt Franchising, L.L.C. brought a claim against franchisees during the 2024 fiscal year. The lawsuit, Hyatt Franchising, L.L.C. v. Imperial Hotels, LLC, Sunikumar Patel, Akash Maheshwari, Roshni Jariwala Desai, Madhvan Nair, Daksha Patel, Sanjay Desai, Raj Gandhi, Usha Patel, Vinod Jayrambhai Patel and Mina Jariwala, concerned unpaid royalty fees and was filed under case number No. 01-24-0008-8964 (AAA 2024).

This disclosure is important for potential franchisees as it reveals that The Standardx (through Hyatt Franchising, L.L.C.) has pursued legal action against its franchisees in the recent past. The claim was specifically for unpaid royalty fees, which are a common obligation in franchise agreements. Understanding the nature and frequency of litigation can help a prospective franchisee assess the financial and legal risks associated with investing in The Standardx franchise.

It is also worth noting that the disclosure mentions that no other litigation is required to be disclosed in Item 3, suggesting that this was the only significant legal action against franchisees during the specified period. However, prospective franchisees should still conduct their own due diligence, including consulting with current and former franchisees, to gain a comprehensive understanding of the franchisor's litigation history and its relationship with its franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.