Does The Standardx Brand Hotel Franchise Agreement require franchisee participation in advertising and marketing, and if so, on what page can this be found?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 Participation in Advertising and Marketing. Franchisee acknowledges that promoting Brand Hotels as a single chain in the United States is an important part of the Hotel System. Franchisee must participate in and use, in the manner that Hyatt specifies, all advertising, marketing and promotional activities, materials and programs that Hyatt periodically requires for similarly-situated Brand Hotels (subject to Reasonable Deviations).
5.3 Approval of Marketing Programs and Materials. Subject to Hyatt's requirements and at Franchisee's expense, Franchisee may conduct local and regional marketing, advertising and promotional programs for the Hotel. Franchisee must ensure that all advertising, marketing and promotional materials, all public relations plans and programs, and all uses of the Proprietary Marks are conducted in a dignified manner and in accordance with the System Standards, including the use of Hyatt's standard templates where applicable, and which may, at Hyatt's option, require Hyatt's prior approval of materials not previously approved by Hyatt in the manner Hyatt specifies. Franchisee must discontinue using any materials, including previouslyapproved materials, and cease engaging in any plans and programs, including previously-approved plans and programs, within the timeframe Hyatt specifies after Franchisee receives written notice from Hyatt. Franchisee may not use Guest Information in conducting marketing, advertising and promotional programs for the Hotel unless conducted by or through Hyatt or with Hyatt's supervision in each instance. Franchisee shall pay Hyatt the reasonable fees that Hyatt periodically establishes for optional marketing, advertising and promotional materials and programs that Franchisee chooses to acquire from Hyatt or its Affiliates or in which Franchisee chooses to participate.
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, Article V, Section 5.2 outlines the franchisee's participation in advertising and marketing. The franchisee must participate in all advertising, marketing, and promotional activities that The Standardx periodically requires for similar hotels. This participation must be in the manner that The Standardx specifies.
Prior to the hotel's opening, franchisees are required to prepare a pre-opening marketing program and submit it to The Standardx for approval at least 120 days before the opening date. This program must meet The Standardx's requirements, including a specified spending amount as detailed in Exhibit B-1. The franchisee is obligated to modify the program as directed by The Standardx and then implement the approved version.
Franchisees have the option to conduct local and regional marketing, advertising, and promotional programs at their own expense, but these are subject to The Standardx's requirements. All marketing materials and public relations plans must adhere to System Standards and be conducted in a dignified manner. The Standardx may require prior approval of these materials, especially those not previously approved. The Standardx also has the right to instruct franchisees to discontinue using any materials or cease any plans and programs, even those previously approved, within a specified timeframe after receiving written notice. The FDD excerpt does not specify which page this information can be found on.