Under what circumstances is the Rider being signed in relation to The Standardx franchise?
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) 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.
IN WITNESS WHEREOF, the parties have signed this Rider as of the dates set forth by their signatures, to be effective as of the Effective Date (regardless of the dates of the parties' signatures).
[ENTITYNAMECAPS] [FRANCHISOR ENTITY]
RIDER TO THE HYATT FRANCHISING, L.L.C. CONFIDENTIALITY AGREEMENT FOR USE IN MARYLAND
This Rider is made as of this day of,, by and between , a[n] , whose address is ("Company") and HYATT FRANCHISING, L.L.C., a Delaware limited liability company, whose address is 150 North Riverside Plaza, Chicago, Illinois 60606 ("Hyatt"). 1. Hyatt and Company are parties to that certain Confidentiality Background. Agreement dated, 2025 that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Confidentiality Agreement.
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, the Rider to the franchise agreement is signed under specific circumstances related to the franchisee's location or residency. For franchisees based in Maryland, the Rider is signed either because the franchisee is a resident of Maryland, or the Brand Hotel will be located or operated in Maryland. Similarly, a Rider to the Confidentiality Agreement is signed for the same reasons related to Maryland. These stipulations ensure compliance with the Maryland Franchise Registration and Disclosure Law.
For franchisees in Minnesota, a Rider to the Confidentiality Agreement is signed if the offer or sale of the franchise for the Brand Hotel was made in Minnesota, or if the Brand Hotel will be located or operated in Minnesota. This ensures adherence to Minnesota Statutes. A similar Rider to the Confidentiality Agreement exists for franchisees in North Dakota, triggered by the offer or sale of the franchise in North Dakota, or if the franchisee is a resident of North Dakota and will operate the Brand Hotel there, ensuring compliance with the North Dakota Franchise Investment Law.
For franchisees in Rhode Island, the Rider to the Franchise Agreement is signed if the offer or sale of the franchise was made in Rhode Island, or if the franchisee is a resident of Rhode Island and will operate the Brand Hotel there. Additionally, a Rider to the Confidentiality Agreement is signed under the same conditions related to Rhode Island, ensuring compliance with the Rhode Island Franchise Investment Act. These state-specific Riders modify the standard franchise or confidentiality agreements to account for local laws and regulations, providing additional protections or disclosures as required by each state.