factual

Are there non-competition covenants after the franchise is terminated or expires for The Standardx franchisees?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in franchise or other agreement Summary
n. Franchisor's right of first refusal to acquire franchisee's business 1.5 and Exhibit C of Franchise Agreement We only have right of first offer on transfers of the Hotel or a Controlling Ownership Interest in you if we and you sign Exhibit C. We will require Exhibit C only for certain markets that we determine are strategic to us.
o. Franchisor's option to purchase franchisee's business Not applicable Not applicable.
p. Death or disability of franchisee 12.7 of Franchise Agreement Upon death or incompetence of owner of a Controlling Ownership Interest in you or your controlling owner, representative must transfer to approved transferee within 6 months.
q. Non-competition covenants during the term of the franchise 4.2, 4.10 and 4.11 of Franchise Agreement No covenant not to compete, but neither you nor Hotel management company may be a Competing Brand Owner.
r. Non-competition covenants after the franchise is terminated or expires Not applicable Not applicable.

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, there are no non-competition covenants for franchisees after the franchise is terminated or expires. The FDD outlines various provisions within the franchise agreement, including those related to non-competition.

Specifically, Item 17 addresses renewal, termination, transfer, and dispute resolution, providing a table that summarizes key aspects of the franchise agreement. This table explicitly states whether non-competition covenants exist during and after the franchise term.

For The Standardx, the table indicates that while there are non-competition considerations during the term of the franchise, with the franchisee and hotel management company not being allowed to be a Competing Brand Owner, there are no such covenants in place after the franchise is terminated or expires. This means that once the franchise agreement ends, a former franchisee is not restricted by The Standardx from engaging in similar business ventures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.