What rules must a franchisee follow when using The Standardx's Copyrighted Materials?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
You must follow our rules when using the Copyrighted Materials. You may use the Copyrighted Materials only as we specify to operate the Hotel under the Franchise Agreement.
You must notify us immediately of any apparent infringement or challenge to your use of any Copyrighted Materials or Confidential Information, or of any person's claim of any rights in any Copyrighted Materials or Confidential Information, and not communicate with any person other than us, our affiliates, and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim. We and our affiliates may take the action we and they deem appropriate (including no action) and control exclusively any litigation or administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning any Copyrighted Materials or Confidential Information. You must sign any documents and take any other reasonable actions that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' interests in any litigation or other proceeding or otherwise to protect and maintain our and our affiliates' interests in the Copyrighted Materials and Confidential Information. We will reimburse your reasonable out-of-pocket costs for taking any requested action.
We need not participate in your defense nor indemnify you for damages and expenses you incur if you are a party to any administrative or judicial proceeding involving any Copyrighted Materials or if the proceeding is resolved unfavorably to you. If it becomes advisable at any time in our sole judgment for you to modify or discontinue using any of the Copyrighted Materials and/or for you to use one or more additional or substitute copyrighted or copyrightable items, you must immediately comply with our directions.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 68–71)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees must adhere to specific rules when using the franchisor's copyrighted materials. The Standardx claims copyright protection for these materials, even without registering them with the United States Copyright Office. Franchisees are permitted to use these materials only as specified by The Standardx for operating the hotel under the Franchise Agreement. This means The Standardx maintains tight control over how its brand and intellectual property are used.
If a franchisee notices any potential infringement or challenges to their use of The Standardx's copyrighted materials, they must immediately notify The Standardx. The franchisee is not allowed to communicate with anyone else about the issue, except for The Standardx, its affiliates, their attorneys, and the franchisee's own attorneys. The Standardx and its affiliates have the exclusive right to decide what action to take, including taking no action at all, and they control any legal proceedings related to the infringement, challenge, or claim. Franchisees are required to sign documents and take reasonable actions deemed necessary by The Standardx's attorneys to protect the franchisor's interests. The Standardx will cover the franchisee's reasonable out-of-pocket costs for taking these actions.
However, The Standardx is not obligated to defend the franchisee or cover their expenses if they are involved in a legal proceeding related to the copyrighted materials and the outcome is unfavorable. Furthermore, if The Standardx decides that the franchisee needs to modify or stop using certain copyrighted materials, or use alternative materials, the franchisee must immediately follow those directions. This highlights the franchisor's power to make unilateral changes to the materials a franchisee uses, which could potentially require the franchisee to adapt quickly and at their own expense in some cases. These stipulations ensure The Standardx maintains control over its brand and protects its intellectual property, while placing the onus on the franchisee to comply with its directives and report any potential issues.