Regarding The Standardx franchise, what does the franchisee warrant about Hyatt's access to software?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee Limited Warranty. Franchisee represents and warrants that access by Hyatt to software licensed or controlled by Franchisee is permitted under the applicable third party license agreements. Except with respect to systems owned or controlled by Hyatt or a vendor selected by Hyatt, Franchisee represents and warrants that Hyatt's performance of the IT Project Management Services will not constitute a misappropriation of any intellectual property or other proprietary or contractual rights of any third party or a violation of any applicable law, regulation, rule or order.
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 franchisee provides a limited warranty regarding Hyatt's access to software. Specifically, the franchisee warrants that Hyatt's access to software licensed or controlled by the franchisee is permitted under applicable third-party license agreements. This means the franchisee must ensure that any software they use and allow Hyatt to access has the proper licensing in place to permit such access.
Furthermore, the franchisee warrants that Hyatt's performance of IT Project Management Services will not infringe upon any third party's intellectual property or contractual rights, or violate any laws, regulations, rules, or orders. This warranty does not apply to systems owned or controlled by Hyatt or a vendor selected by Hyatt. This protects Hyatt from potential legal issues arising from their IT project management activities related to the franchisee's systems.
In practical terms, a prospective The Standardx franchisee needs to carefully review all software licenses they hold and ensure that these licenses allow Hyatt (or Hyatt's chosen vendor) to access and utilize the software as part of the IT Project Management Services. Failure to do so could result in a breach of the franchise agreement and potential legal ramifications. It is the franchisee's responsibility to procure all necessary third-party components and comply with all underlying third-party agreements, including software licenses.