What are the requirements for The Standardx franchisee to notify Hyatt of infringements and claims related to proprietary marks?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
11.3 Notification of Infringements and Claims. Franchisee agrees to notify Hyatt immediately of any apparent infringement or challenge to Franchisee's use of any Proprietary Mark, Copyrighted Materials, or Confidential Information, or of any person's claim of any rights in any Proprietary Mark, Copyrighted Materials, or Confidential Information, and not to communicate with any person other than Hyatt, its Affiliates, and its and their attorneys, and Franchisee's attorneys, regarding any infringement, challenge, or claim. Hyatt and its Affiliates may take the action it and they deem appropriate (including no action) and control exclusively any Proceeding arising from any infringement, challenge, or claim or otherwise concerning any Proprietary Mark, Copyrighted Materials, or Confidential Information. Franchisee agrees to sign any documents and take any other reasonable actions that, in the opinion of Hyatt's and its Affiliates' attorneys, are necessary or advisable to protect and maintain Hyatt's and its Affiliates' interests in any Proceeding or otherwise to protect and maintain Hyatt's and its Affiliates' interests in the Proprietary Marks, Copyrighted Materials, and Confidential Information. Hyatt or its Affiliate will reimburse Franchisee's reasonable out-of-pocket costs for taking any requested action.
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, franchisees must immediately notify Hyatt of any apparent infringement or challenge to the franchisee's use of any Proprietary Mark, Copyrighted Materials, or Confidential Information. This also applies to any person's claim of any rights in these items.
The franchisee is instructed not to communicate with anyone other than Hyatt, its affiliates, their attorneys, and the franchisee's own attorneys regarding any infringement, challenge, or claim. Hyatt and its affiliates have the authority to take any action they deem appropriate, including no action, and they exclusively control any proceeding arising from such issues.
The franchisee must sign any documents and take reasonable actions necessary to protect Hyatt's interests, as determined by Hyatt's attorneys. Hyatt or its affiliate will reimburse the franchisee for reasonable out-of-pocket costs incurred while taking these actions. This ensures that Hyatt maintains control over its brand and intellectual property while requiring franchisees to actively participate in protecting those assets.