Where are the non-competition covenants during the term of The Standardx franchise detailed in the franchise agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| , no part or portion of the Mixed-Use Site may be used to operate: (i) a | |
|---|---|
| pawnshop, check-cashing business, gentlemen’s club, pornography retailer, or other sexually- | |
| oriented business, or (ii) a package liquor store, marijuana dispensary, or gambling business, | |
| without our prior written consent, which consent may be granted or withheld in our sole judgment, | |
| or (iii) a bar, lounge, club or similar establishment situated within 300 feet of any part of the Hotel’s | |
| interior footprint, whose revenues are derived more than 50% from the sale of alcoholic beverages, | |
| without our prior written consent, which consent will not be withheld unless we reasonably | |
| determine that the establishment might have a material negative impact on guests of the Hotel. | |
| Provision | Section in franchise or other agreement |
| n. Franchisor’s right of first refusal to acquire franchisee’s business | 1.5 and Exhibit C of Franchise Agreement |
| o. Franchisor’s option | Not applicable |
| to purchase | |
| franchisee’s | |
| business | |
| p. Death or disability of franchisee | 12.7 of Franchise Agreement |
| q. Non-competition covenants during the term of the franchise | 4.2, 4.10 and 4.11 of Franchise Agreement |
| r. Non-competition | Not applicable |
| covenants after the | |
| franchise is | |
| terminated or | |
| expires | |
| s. Modification of the agreement | 18.5 of Franchise Agreement; 15 of Central Services Agreement |
| t. Integration/merger clause | 18.5 of Franchise Agreement; 8(f) of Confidentiality Agreement; 14 of Central Services Agreement |
| u. Dispute resolution by arbitration or mediation | 14.1 of Franchise Agreement; 11 of Central Services Agreement |
| v. Choice of forum | 14.3 of Franchise Agreement; 11 of Central Services Agreement |
| Provision | Section in franchise or other agreement |
| w. Choice of law | 14.2 of Franchise Agreement; 8C of Confidentiality Agreement; 11 of Central Services Agreement Provision |
| k. | "Transfer" by franchisee – defined |
| l. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Item 17 details provisions related to the franchise relationship, including non-competition covenants during the term of the franchise. Specifically, the non-competition covenants during the term of the franchise are found in Sections 4.2, 4.10, and 4.11 of The Standardx Franchise Agreement.
It is important to note that while there is no explicit covenant not to compete, neither the franchisee nor the Hotel management company may be a Competing Brand Owner. This means that while a franchisee can operate other businesses, they are restricted from owning or operating a competing hotel brand during the term of The Standardx franchise agreement.
Prospective franchisees should carefully review Sections 4.2, 4.10, and 4.11 of the Franchise Agreement to fully understand the scope and limitations of these non-competition provisions. Understanding what constitutes a "Competing Brand Owner" is crucial to avoid potential breaches of the agreement. Franchisees should also seek legal counsel to interpret these sections in light of their specific business plans and circumstances.