Are there non-competition covenants after the franchise is terminated or expires for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| , no part or portion of the Mixed-Use Site may be used to operate: (i) a | |
|---|---|
| pawnshop, check-cashing business, gentlemen’s club, pornography retailer, or other sexually- | |
| oriented business, or (ii) a package liquor store, marijuana dispensary, or gambling business, | |
| without our prior written consent, which consent may be granted or withheld in our sole judgment, | |
| or (iii) a bar, lounge, club or similar establishment situated within 300 feet of any part of the Hotel’s | |
| interior footprint, whose revenues are derived more than 50% from the sale of alcoholic beverages, | |
| without our prior written consent, which consent will not be withheld unless we reasonably | |
| determine that the establishment might have a material negative impact on guests of the Hotel. | |
| Provision | Section in franchise or other agreement |
| n. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Item 17 addresses renewal, termination, transfer, and dispute resolution, including non-competition covenants. Specifically, the FDD indicates whether there are any restrictions on a franchisee's ability to compete with The Standardx after the franchise agreement is terminated or expires.
The table in Item 17 of The Standardx's FDD lists various provisions of the franchise agreement and related agreements. One of these provisions directly addresses non-competition covenants after the franchise is terminated or expires. For The Standardx, the FDD clearly states that this provision is 'Not applicable'.
This 'Not applicable' designation means that The Standardx does not impose any non-competition covenants on franchisees after the termination or expiration of their franchise agreement. In practical terms, a former The Standardx franchisee is not contractually restricted from opening a competing business or working for a competitor after their franchise relationship with The Standardx ends. This can be a significant benefit for franchisees seeking future flexibility and options in their business endeavors.