Does The Standardx have an option to purchase the franchisee's business, and if so, where is it detailed in the franchise agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| n. | Franchisor's right of first refusal to acquire franchisee's business | 1.5 and Exhibit C of Franchise Agreement | We only have right of first offer on transfers of the Hotel or a Controlling Ownership Interest in you if we and you sign Exhibit C. We will require Exhibit C only for certain markets that we determine are strategic to us. |
| o. | Franchisor's option to purchase franchisee's business | Not applicable | Not applicable. |
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, The Standardx does not have an option to purchase the franchisee's business. The FDD states this explicitly under the provision regarding the franchisor's option to purchase the franchisee's business.
However, The Standardx does retain a right of first refusal to acquire the franchisee's business under certain conditions. This right is detailed in Section 1.5 and Exhibit C of the Franchise Agreement. The FDD clarifies that The Standardx will only require Exhibit C, which grants them the right of first offer on transfers of the Hotel or a Controlling Ownership Interest, for specific markets deemed strategic by The Standardx.
This means that as a prospective franchisee, you may or may not be subject to The Standardx's right of first refusal depending on the location of your franchise. If your location is considered strategic, The Standardx would have the first opportunity to buy your business if you decide to sell. It is important to review Exhibit C of the Franchise Agreement carefully to understand the specific terms and conditions related to this right of first refusal, including the process for determining a fair price and the timeline for The Standardx to exercise its option.