Under what circumstances is the Rider to The Standardx Franchise Agreement signed, specifically relating to Rhode Island?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) the offer or sale of the franchise for the Brand Hotel Franchisee will | ||
| operate under the Franchise Agreement was made in the State of Rhode Island, and/or | ||
| (b) Franchisee is a resident of Rhode Island and will operate the Brand Hotel in Rhode Island. | ||
- Governing 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 to the Franchise Agreement is signed when specific conditions related to Rhode Island are met. This Rider is annexed to and forms a part of the Franchise Agreement. The Rider is implemented under two primary circumstances: first, if the offer or sale of The Standardx franchise, under which the Brand Hotel franchisee will operate, was made in the State of Rhode Island. Second, the Rider is signed if the franchisee is a resident of Rhode Island and will operate The Standardx Brand Hotel within the state.
This measure ensures that The Standardx franchise operations comply with the Rhode Island Franchise Investment Act, addressing specific legal requirements within the state. The inclusion of the Rider modifies certain aspects of the standard franchise agreement to align with Rhode Island law. For instance, the "Summary" section of Item 17 in the Franchise Disclosure Document, concerning the choice of forum and law, is altered to ensure that Rhode Island law takes precedence for claims arising under the Rhode Island Franchise Investment Act, subject to arbitration obligations.
Prospective franchisees in Rhode Island should carefully review this Rider with legal counsel to understand their rights and obligations under the Rhode Island Franchise Investment Act. This includes understanding how the Rider affects dispute resolution, choice of law, and other critical aspects of the franchise agreement. The Rider also includes a provision ensuring that no statement or acknowledgement signed by the franchisee waives any claims under applicable state franchise law, including fraud in the inducement, or disclaims reliance on statements made by The Standardx or its representatives.