What is the condition that must be met before the franchisee can open The Standardx hotel in affiliation with the Proprietary Marks?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.5 Opening the Hotel.
Franchisee may not open or begin operating the Hotel in affiliation with the Proprietary Marks until Hyatt has notified Franchisee in writing that Franchisee has satisfied all of the pre-opening conditions set forth in the System Standards or otherwise in writing.
Franchisee must open and begin operating the Hotel under the Hotel System and in affiliation with the Proprietary Marks on or before the Opening Deadline.
Franchisee may request an extension of the Opening Deadline by submitting to Hyatt, at least three (3) months before the Opening Deadline, a written request for extension and an extension fee in the amount set forth in Exhibit B-1.
If Hyatt approves the extension, Hyatt will set a new Opening Deadline, the extension fee will be non-refundable, and Hyatt may (at its option) require Franchisee to modify any previously-approved plans, construction documents, or the PIP (as applicable), to comply with the then current design, equipment and other aspects of the Hotel System.
If Hyatt denies the extension, Hyatt will refund the extension fee.
Franchisee shall indemnify Hyatt for all costs and expenses that Hyatt incurs directly or indirectly as a result of Franchisee's failure to open the Hotel on or before the anticipated Opening Date specified by Franchisee or the Opening Deadline, whichever is earlier, including any amounts that Hyatt pays with respect to customers whose reservations at the Hotel are cancelled.
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 cannot open or begin operating The Standardx hotel in affiliation with the Proprietary Marks until The Standardx (Hyatt) has provided written notification that the franchisee has fulfilled all pre-opening conditions. These pre-opening conditions are detailed in the System Standards or otherwise provided in writing by The Standardx.
This requirement ensures that all The Standardx hotels meet the brand's standards before commencing operations. This protects the brand's reputation and ensures a consistent experience for customers. The franchisee bears the responsibility of meeting all these pre-opening requirements, which may include construction, design, training, and other operational aspects.
Furthermore, the franchisee must open and begin operating the hotel under the Hotel System and in affiliation with the Proprietary Marks on or before the Opening Deadline. The franchisee can request an extension of the Opening Deadline by submitting a written request to The Standardx at least three months before the deadline, along with an extension fee as outlined in Exhibit B-1. If The Standardx approves the extension, a new Opening Deadline will be set, and The Standardx may require modifications to previously approved plans to comply with current standards. If the extension is denied, the extension fee will be refunded.
Failure to open the hotel by the specified date can result in the franchisee being liable for all costs and expenses incurred by The Standardx due to the delay, including amounts paid concerning cancelled customer reservations. This underscores the importance of adhering to the pre-opening conditions and deadlines set by The Standardx to avoid potential financial repercussions.