factual

What actions must a The Standardx franchisee take to de-identify the hotel immediately upon termination or expiration of the agreement?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

g any of the Proprietary Marks, and cease using all such items;

  • (b) remove all structures and items identifying the Hotel System, including all elements of the trade dress and other distinctive features, devices, and/or items associated with the Hotel System, such as (for example) FF&E that is uniquely identified with a Brand Hotel and/or other Hyatt Network Hotels, interior signage, phone face plates, memo pads, pens, cups, glasses, and all other materials bearing one or more of the Proprietary Marks. With respect to the Hotel's exterior signage, Franchisee must (i) immediately schedule the permanent removal of all exterior signage bearing any of the Proprietary Marks and give Hyatt written evidence of that schedule, (ii) immediately cover all such exterior signage in a professional manner, and (iii) permanently remove all such exterior signage within thirty (30) days after this Agreement expires or terminates. In addition, Franchisee must make at its expense such specific additional changes that Hyatt reasonably requests to de-identify the Hotel;
  • (c) stop all uses of the Proprietary Marks, Confidential Information and other aspects of the Hotel System in connection with any F&B Operations or Spa Operations (if any);
  • (d) change the Hotel's telephone listing and immediately stop answering the telephone in any way that would lead a current or prospective customer, vendor, or other person to believe that the Hotel still is affiliated with the Brand Hotel network or with Hyatt;
  • (e) stop all uses of the Proprietary Marks on any Franchisee Organization Website and require all third party websites to remove any references that directly or indirectly associate the Hotel with the Proprietary Marks;
  • (f) cancel all fictitious, assumed, or other business name registrations relating to Franchisee's use of the Proprietary Marks; and

(g) permit Hyatt's representatives to enter the Hotel on no less than twenty-four (24) hours' prior notice to conduct inspections on a periodic basis until de-identification is completed to Hyatt's satisfaction.

Beginning on the date upon which this Agreement terminates or expires and continuing until de-identification is completed to Hyatt's satisfaction, Franchisee must maintain a conspicuous sign at the registration desk in a form that Hyatt specifies stating that the Hotel no longer is associated with the Brand Hotel network. Franchisee and its Affiliates may not, without Hyatt's permission, represent to Hotel customers, prospective customers or the public that the Hotel is or was a Brand Hotel, or otherwise hold itself out to the public as a former franchisee of Hyatt's or as the former operator of a Brand Hotel, except in the limited case of informing investors, prospective investors, or lenders that Franchisee has general experience in operating a Brand Hotel. Subject to the terms of Subsection (b) above with respect to exterior signage, Franchisee shall complete all de-identification obligations under this Section 16.1 to Hyatt's satisfaction, and provide a written certification to Hyatt indicating such completion, on or before the date which is fifteen (15) days after this Agreement terminates or expires. If Franchisee fails to comply with any of the de-identification provisions in this Section 16.1, Franchisee agrees to: (i) pay Hyatt a royalty fee of Five Thousand Dollars ($5,000) per day until de-identification is completed to Hyatt's satisfaction; and (ii) permit Hyatt's representatives to enter the Hotel to complete the de-identification process at Franchisee's expense.

  • 16.2 Pay Amounts Owed. Unless otherwise provided in this Agreement, within five (5) days after the termination or expiration of this Agreement, Franchisee must pay all amounts owed to Hyatt and its Affiliates under this Agreement or any other agreement.
  • 16.3 Contacting Customers. Upon this Agreement's termination or expiration for any reason, Hyatt has the right to contact those individuals or entities who have reserved rooms with Franchisee through the CRS, and any other Hotel customers, and inform them that Franchisee's lodging facility no longer is part of the Brand Hotel network. Hyatt also has the right to inform those individuals, entities and customers of other Brand Hotels and Hyatt Network Hotels that are proximately located to Franchisee's lodging facility in case they prefer to change their reservations so that they can stay at a Hyatt Network Hotel. Hyatt's exercise of these rights will not constitute an interference with Franchisee's contractual or business relationships. Franchisee acknowledges that the individuals and entities that made reservations with Franchisee's lodging facility when it was a Brand Hotel under this Agreement constitute Hyatt's customers.
  • 16.4 Survival.

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, upon termination or expiration of the franchise agreement, the franchisee must immediately cease using the Hotel System and begin de-identifying the hotel to ensure it is no longer recognized as a The Standardx branded hotel. This involves several specific actions to be taken immediately. The Standardx franchisee must adhere to the specific de-identification steps that The Standardx specifies.

Specifically, the franchisee is required to return all copyrighted materials and confidential information (excluding guest information stored in the hotel's property management system) and cease using them. They must remove all structures and items identifying the Hotel System, including trade dress elements and distinctive features, such as FF&E uniquely identified with The Standardx hotels, interior signage, phone face plates, memo pads, pens, cups, glasses, and all other materials bearing The Standardx's proprietary marks. The franchisee must also stop all uses of the Proprietary Marks, Confidential Information and other aspects of the Hotel System in connection with any F&B Operations or Spa Operations.

Furthermore, the franchisee must change the hotel's telephone listing and immediately stop answering the telephone in any way that would lead customers to believe the hotel is still affiliated with The Standardx. They must also stop all uses of the Proprietary Marks on any Franchisee Organization Website and require all third party websites to remove any references that directly or indirectly associate the Hotel with the Proprietary Marks, and cancel all fictitious, assumed, or other business name registrations relating to Franchisee's use of the Proprietary Marks. The Standardx's representatives are allowed to enter the hotel with 24 hours notice to conduct periodic inspections until de-identification is completed. The franchisee must also maintain a conspicuous sign at the registration desk stating that the Hotel no longer is associated with the Brand Hotel network.

The franchisee has fifteen (15) days after termination or expiration to complete all de-identification obligations to The Standardx's satisfaction and provide a written certification of completion. Failure to comply results in a royalty fee of $5,000 per day until de-identification is completed, and The Standardx has the right to enter the hotel to complete the process at the franchisee's expense.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.