What is the term length of the Trademark License Agreement for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
d faith and fair dealing, | | | divided loyalty, or other theories. | | Hyatt Corporation has made all required renewal and affidavit filings for these registrations.
Hyatt Corporation granted us the rights to use and sublicense the above Proprietary Marks under a Trademark License Agreement dated November 1, 1993, as amended (the "Trademark License Agreement"). That agreement has a perpetual term, subject to termination by Hyatt Corporation for cause. Hyatt Corporation may terminate the agreement if it no longer owns a majority interest in us, if we fail to make a required payment and do not cure the failure within 7 days after notice, if we fail to maintain or require our sublicensees to maintain Hyatt Corporation's prescribed standards of quality and service and do not cure the failure within 30 days after notice, if we fail to comply with any other provision of the agreement and do not cure the failure within 30 days after notice, or if we have an insolvency event and do not cure the failure within 60 days after notice. If Hyatt Corporation terminates the Trademark License Agreement because we failed to maintain or failed to require our sublicensees to maintain Hyatt Corporation's standards of quality and service, Hyatt Corporation 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.
In addition, our affiliate, Standard International Management, LLC ("Standard International"), has filed an application for the following Proprietary Mark on the Principal 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.
Source: Item 13 — Trademarks (FDD pages 66–68)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the Trademark License Agreement with Hyatt Corporation, dated November 1, 1993, has a perpetual term. This means the agreement continues indefinitely unless terminated for cause. Hyatt Corporation can terminate the agreement if it no longer owns a majority interest in The Standardx, if The Standardx fails to make required payments and does not correct this within 7 days of notice, or if The Standardx fails to maintain Hyatt Corporation's standards of quality and service and does not correct this within 30 days of notice. Termination can also occur if The Standardx fails to comply with any other provision of the agreement and does not cure the failure within 30 days after notice, or if The Standardx has an insolvency event and does not cure the failure within 60 days after notice.
Furthermore, if Hyatt Corporation terminates the Trademark License Agreement because The Standardx failed to maintain the required standards of quality and service, Hyatt Corporation may enter into a license with The Standardx's authorized franchisees, provided the franchisee is not in default of their franchise agreement. This condition highlights the importance of franchisees adhering to the franchisor's standards to maintain their licensing rights. The FDD also states that no other agreements significantly limit The Standardx's rights to use or license the Proprietary Marks in a manner material to the franchise.
Additionally, Standard International granted Hyatt Corporation rights to use and sublicense the StandardX Proprietary Marks under a Trademark License Agreement dated October 1, 2024. This agreement also 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, or if Hyatt Corporation fails to maintain or require its sublicensees (including The Standardx) to maintain Standard International's prescribed standards of quality and service and does not cure the failure within 30 days after notice. Termination can also occur 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 The Standardx 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 The Standardx's authorized franchisees, but only if the franchisee not in default of its franchise agreement.