Under the Standardx franchise agreement, what is a 'Receiving Party' defined as?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
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' r
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 term "Releasing Parties" encompasses a broad range of individuals and entities associated with the franchisee. This includes the franchisee themselves, their affiliates, and the owners, officers, directors, partners, managers, employees, representatives, and agents of both the franchisee and their affiliates. The definition also extends to all successors, heirs, executors, administrators, personal representatives, and assigns of these individuals and entities.
In essence, the "Releasing Parties" represent everyone connected to the franchisee's business who might potentially bring claims against The Standardx. This comprehensive definition ensures that any release of claims covers all possible parties who could assert a claim related to the franchise agreement.
The "Hyatt Parties" are defined as The Standardx and its current and former affiliates, along with their respective owners, officers, directors, partners, managers, employees, representatives, and agents, as well as all of their respective successors, heirs, executors, administrators, personal representatives, and assigns. This definition mirrors that of the "Releasing Parties" but applies to The Standardx's side of the agreement.
This definition is important because it clarifies who is giving up their rights to make claims against The Standardx in certain situations, such as when a franchisee is bought out or the franchise agreement is terminated. Prospective franchisees should carefully review any documents containing these definitions to understand the full scope of their potential liabilities and released claims.