Under what conditions does The Standardx require a general release from the franchisee and their owners?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| HYATT FRANCHISING, L.L.C. ("we," "us," or "our") and the undersigned franchisee, |
|---|
| ("you" |
| or |
| "your"), |
| currently are parties to a certain Franchise Agreement (the "Franchise Agreement") dated |
| You have asked us to take the following action or to agree to |
| the following request: [insert as appropriate for renewal or transfer situation] |
| . We have the right under the Franchise Agreement to obtain a general release from |
| you (and, if applicable, your owners) as a condition of taking this action or agreeing to this request. |
| Therefore, we are willing to take the action or agree to the request specified above if you (and, if |
| applicable, your owners) give us the release and covenant not to sue provided below in this |
| document. You (and, if applicable, your owners) are willing to give us the release and covenant |
| not to sue provided below as partial consideration for our willingness to take the action or agree to |
| the request described above. |
Consistent with the previous introduction, you, on your own behalf and on behalf of your affiliates, and your and their respective owners, officers, directors, partners, managers, employees, representatives and agents, and all of your and their respective successors, heirs, executors, administrators, personal representatives and assigns (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current and former affiliates, and our and their respective owners, officers, directors, partners, managers, employees, representatives and agents, and all of our and their respective successors, heirs, executors, administrators, personal representatives and assigns (collectively, the "Hyatt Parties"), from any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature and kind (collectively, "Claims") that you or any of the other Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Hyatt Parties (1) arising out of or related to the Releasing Parties' rights or the Hyatt Parties' obligations under the Franchise Agreement or any related agreement, or (2) otherwise arising from or related to your or any of the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Hyatt Parties.
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, there are a couple of instances where The Standardx may require a general release from the franchisee and their owners.
First, The Standardx has the right to obtain a general release from the franchisee and their owners as a condition of taking a specific action or agreeing to a request made by the franchisee. This suggests that if a franchisee asks The Standardx to make an exception or provide a benefit not typically granted, The Standardx may require a release to protect itself from potential future claims related to that action or request.
Second, if a franchisee satisfies all other conditions for a successor franchise agreement, the franchisee and any guarantors must sign general releases, in a form satisfactory to Hyatt, of any and all claims against Hyatt and its affiliates and their respective owners, officers, directors, managers, employees, agents, representatives, successors, and assigns. This is a standard practice to ensure that upon renewal, all previous issues are resolved and do not carry over into the new franchise term. This release covers a broad range of potential claims, so franchisees should carefully consider its implications before signing.