What conditions must be met before Hyatt will conduct its own inspection of a The Standardx franchise?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt may inspect the Hotel at any time, with or without notice to Franchisee, to determine whether Franchisee and the Hotel are complying with the Hotel System, System Standards, and other provisions of this Agreement.
Franchisee must give Hyatt's representatives free lodging (subject to availability) during the inspection period.
The Hotel also must participate in and pay its allocable share of all fees and other costs associated with the Quality Assurance and Compliance Program.
If Hyatt determines that the Hotel is failing to comply with the System Standards or any other terms and conditions of this Agreement, then, without limiting Hyatt's other rights or remedies under this Agreement, any other agreement or applicable law, Franchisee must: (a) reimburse Hyatt for its costs related to that non-compliance, including fees, travel and living expenses, guest satisfaction payments or expenses, and other costs for administering any necessary actions, follow-up inspections, audits or re-evaluation visits until the failures to comply have been fully corrected, and (b) ensure that applicable Hotel personnel attend meetings and additional brand standard training programs that Hyatt specifies, at Franchisee's sole expense, relating to that non-compliance.
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, Hyatt may inspect a Hotel at any time, with or without notice to the franchisee, to determine whether the franchisee and the hotel are complying with the Hotel System, System Standards, and other provisions of the Franchise Agreement. The franchisee must provide Hyatt's representatives with free lodging, subject to availability, during the inspection period. The hotel must also participate in and pay its allocable share of all fees and other costs associated with the Quality Assurance and Compliance Program.
If Hyatt determines that the Hotel is failing to comply with the System Standards or any other terms and conditions of this Agreement, then, without limiting Hyatt's other rights or remedies under this Agreement, any other agreement or applicable law, Franchisee must: (a) reimburse Hyatt for its costs related to that non-compliance, including fees, travel and living expenses, guest satisfaction payments or expenses, and other costs for administering any necessary actions, follow-up inspections, audits or re-evaluation visits until the failures to comply have been fully corrected, and (b) ensure that applicable Hotel personnel attend meetings and additional brand standard training programs that Hyatt specifies, at Franchisee's sole expense, relating to that non-compliance.
This means that The Standardx franchisees should be prepared for inspections at any time and without prior warning. Franchisees must maintain compliance with all System Standards and provisions of the franchise agreement to avoid incurring additional costs, such as reimbursement for Hyatt's expenses related to non-compliance, fees, travel and living expenses, guest satisfaction payments or expenses, and other costs for administering any necessary actions, follow-up inspections, audits or re-evaluation visits until the failures to comply have been fully corrected. Additionally, franchisees may be required to send hotel personnel to additional brand standard training programs at their own expense.