What are the potential consequences if The Standardx's right to use its trademark is challenged?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ipal Register of the PTO:
| Mark | Application No. | Application Date |
|---|---|---|
| StandardX | 98396276 | February 7, 2024 |
Standard International's application for this trademark remains pending. We do not have a federal registration for our principal trademark. Therefore, our trademark does not have many legal benefits and rights as a federally registered trademark. If our right to use the trademark is challenged, you may have to change to an alternative trademark, which may increase your expenses.
Standard International granted Hyatt Corporation the rights to use and sublicense the StandardX Proprietary Marks under a Trademark License Agreement dated October 1, 2024 (the "Standard International Trademark License Agreement"), which are subsequently sublicensed to us via the Trademark License Agreement discussed above. That agreement has a perpetual term, subject to termination by Standard International for cause. Standard International may terminate the agreement if Standard International and Hyatt Corporation are no longer under common control, if Hyatt Corporation fails to make a required payment and does not cure the failure within 7 days after notice, if Hyatt Corporation fails to maintain or require its sublicensees (including us) to maintain Standard International's prescribed standards of quality and service and does not cure the failure within 30 days after notice, if Hyatt Corporation fails to comply with any other provision of the agreement and does not cure the failure within 30 days after notice, or if Hyatt Corporation has an insolvency event and does not cure the failure within 60 days after notice. If Standard International terminates the Standard International Trademark License Agreement because Hyatt or we failed to maintain or failed to require its or our sublicensees to maintain Standard International's standards of quality and service, Standard International may enter into a license with our authorized franchisees, but only if the franchisee not in default of its franchise agreement.
No other agreements significantly limit our rights to use or license the Proprietary Marks in a manner material to the franchise.
There are no currently effective material determinations of the PTO, the Trademark Trial and Appeal Board, any state trademark administrator or any court, and no pending infringement, opposition or cancellation proceedings or other material federal or state court litigation, involving the Proprietary Marks. We do not know of any superior prior rights or infringing uses that could materially affect your use of the Proprietary Marks in any state.
You must follow our rules when using the Proprietary Marks. You (and any F&B Operators at the Hotel) may not use the Proprietary Marks with any Hotel restaurant operations without our prior written consent, which we will not unreasonably withhold, and complying with all related System Standards. If we discover your unauthorized use of the Proprietary Marks, we may require you to destroy (with no reimbursement from us) all offending items reflecting that unauthorized use.
Source: Item 13 — Trademarks (FDD pages 66–68)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, because the application for the StandardX trademark is still pending and not federally registered, it lacks the full legal protections of a registered trademark. If The Standardx's right to use the trademark is challenged, a franchisee may be required to switch to an alternative trademark. This change could lead to increased expenses for the franchisee as they rebrand their location.
Furthermore, franchisees are obligated to adhere to The Standardx's guidelines when using the Proprietary Marks. Franchisees cannot use the Proprietary Marks with any Hotel restaurant operations without prior written consent from The Standardx. Unauthorized use of the Proprietary Marks may result in The Standardx requiring the franchisee to destroy all items displaying the unauthorized use, without any reimbursement from The Standardx. Franchisees must also immediately notify The Standardx of any potential infringement or challenges to the use of any Proprietary Mark.
If it becomes necessary for The Standardx and/or the franchisee to modify, discontinue, or replace any Proprietary Mark, the franchisee must comply with The Standardx's directions within a reasonable timeframe after receiving notice. However, The Standardx will not reimburse the franchisee for any costs associated with these changes. These costs may include expenses related to changing the Hotel's signs, any loss of revenue resulting from the modified or discontinued Proprietary Mark, or the expenses of promoting a modified or substitute trademark or service mark. The Standardx will, however, reimburse a franchisee for all damages and expenses incurred in a trademark infringement proceeding disputing the franchisee's authorized use of any Proprietary Mark, provided the franchisee has notified The Standardx in a timely manner and complies with their directions.