Under what conditions does The Standardx require Exhibit C regarding the right of first offer?
The_Standardx Franchise · 2025 FDDAnswer 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. |
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, Exhibit C, concerning the franchisor's right of first offer, is not a standard requirement for all franchise agreements. The Standardx will only require Exhibit C if both The Standardx and the franchisee sign it.
The Standardx's right of first offer applies specifically to transfers of the Hotel or a Controlling Ownership Interest in the franchisee's business. This means that if a franchisee intends to sell their Hotel or a controlling share of their ownership, The Standardx has the first opportunity to purchase it.
The FDD specifies that The Standardx will only require Exhibit C for certain markets deemed strategic by The Standardx. This implies that whether or not a franchisee will be subject to the right of first offer depends on the location and its importance to The Standardx's overall business strategy. Prospective franchisees should inquire about whether their specific market is considered strategic and if Exhibit C will be a part of their franchise agreement.