What specific sections of The Standardx Franchise Agreement are modified by the releases outlined in the Rider?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is made and entered into as of, 2025 (this "Agreement") by | |
|---|---|
| and between, a ("Franchisee") and the | |
| franchisor entity set forth in Exhibit C ("Hyatt"). | |
| 1. | Background. Hyatt and Franchisee are parties to that certain Franchise Agreement |
| dated, 2025 that has been signed concurrently with the signing of | |
| this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is | |
| being signed because (a) Franchisee is a resident of Maryland, or (b) the Brand Hotel will be | |
| located or operated in Maryland. | |
| 2. | Releases. The following language is added to the end of Sections 10, 12.4(e) and |
| 13.3 of the Franchise Agreement: | |
| ; provided, however, that such general release shall not apply to any liability under | |
| the Maryland Franchise Registration and Disclosure Law. | |
| 3. | Dispute Resolution. The following sentence is added to the end of the first |
| paragraph of Section 14.1: | |
| Franchisee may, subject to any arbitration obligations, bring an action in Maryland | |
| for claims arising under the Maryland Franchise Registration and Disclosure Law | |
| to the extent required by the Maryland Franchise Registration and Disclosure Law, | |
| unless preempted by the Federal Arbitration Act. | |
| 4. | Governing Law. The following sentence is added to the end of Section 14.2: |
| However, to the extent required by applicable law, Maryland law will apply to | |
| claims arising under the Maryland Franchise Registration and Disclosure Law. | |
| 5. | Limitations of Claims. The following sentence is added to the end of Section 14.6 |
| of the Franchise Agreement: | |
| , except that any and all claims arising under the Maryland Franchise Registration | |
| and Disclosure Law must be brought within three (3) years after the grant of the | |
| Franchise. | |
| 6. | Acknowledgements. The following language is added to the end of Article XIX of |
| the Franchise Agreement: |
Such representations are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and
Disclosure Law.
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, a rider modifies specific sections of the Franchise Agreement related to releases, dispute resolution, governing law, and limitations of claims, particularly for franchisees in Maryland. The rider is annexed to and forms part of the Franchise Agreement and is applicable if the franchisee is a resident of Maryland or if the Brand Hotel will be located or operated in Maryland.
Specifically, the rider adds language to the end of Sections 10, 12.4(e), and 13.3 of the Franchise Agreement concerning releases. However, these general releases do not apply to any liability under the Maryland Franchise Registration and Disclosure Law, providing an exception for claims arising under that specific law. This ensures that franchisees retain their rights under Maryland franchise law despite any general release clauses in the agreement.
Furthermore, the rider modifies Section 14.1 regarding dispute resolution by adding a sentence that allows the franchisee to bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to any arbitration obligations and unless preempted by the Federal Arbitration Act. Section 14.2, concerning governing law, is also modified to state that Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law to the extent required by applicable law. Lastly, Section 14.6, which addresses limitations of claims, is amended to specify that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.