Besides the Management Company, under what condition can the Franchisee manage The Standardx Hotel?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
4.2 Management of the Hotel.
(a) Franchisee or Management Company as Manager. Either a Management Company that Hyatt approves in writing or Franchisee (if Hyatt approves Franchisee to manage the Hotel) must at all times retain and exercise direct management control over all aspects of the Hotel's business and must be the employer of the Hotel's Core Management and other personnel, except for any members of Core Management that are overseen by an F&B Operator whom Hyatt approves. At Hyatt's option, before any of the Hotel's Core Management are engaged, Franchisee must submit to Hyatt the identity and qualifications of the proposed candidates. These personnel must be in place and working on behalf of the Hotel by the time period Hyatt specifies. Franchisee may not enter into a Management Arrangement without Hyatt's prior written approval of the Management Company, and Franchisee may not itself manage the Hotel without Hyatt's approval of Franchisee as the Hotel's operator. Hyatt will not unreasonably withhold its approval if the Management Company or Franchisee (as applicable) meets Hyatt's minimum qualifications, including Hyatt's then current operator approval fee, and ensures that its personnel attend and satisfactorily complete required brand standard training programs.
(c) Revocation of Management Company Approval.
If Hyatt revokes its approval of the Management Company or of Franchisee as manager, then Franchisee must promptly terminate the Management Arrangement with that Management Company (if applicable) and either assume direct control of the Hotel's management and operation, if Hyatt approves Franchisee to manage the Hotel, or engage another Management Company that Hyatt has approved in writing.
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, a franchisee can manage The Standardx hotel if Hyatt approves the franchisee to do so. The FDD specifies that either a Management Company approved by Hyatt or the Franchisee, if approved by Hyatt, must retain direct management control over all aspects of the hotel's business.
Hyatt's approval is contingent on the Management Company or Franchisee meeting Hyatt's minimum qualifications, including paying Hyatt's operator approval fee and ensuring personnel complete required brand standard training programs. Hyatt retains the right to approve or disapprove of the franchisee or management company.
If Hyatt revokes approval of the Management Company, the franchisee must terminate the management arrangement and either assume direct control of the hotel's management, if Hyatt approves, or engage another Hyatt-approved Management Company. This ensures that The Standardx maintains brand standards and operational consistency, regardless of who manages the hotel.
This conditionality means that prospective The Standardx franchisees should be prepared to either manage the hotel themselves (if approved) or work with a Hyatt-approved management company. Franchisees should inquire about the specific qualifications and approval process to understand what is required to manage the hotel directly and what factors might lead to Hyatt revoking approval of a management company.