What is the deadline for a The Standardx franchisee to complete all de-identification obligations and provide written certification to Hyatt?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
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
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 must complete all de-identification obligations and provide written certification to Hyatt within fifteen days after the franchise agreement terminates or expires. This requirement ensures that the hotel is no longer identified as a The Standardx property after the agreement ends. De-identification involves removing all branding, signage, and materials associated with The Standardx.
If a The Standardx franchisee fails to meet this 15-day deadline, they will incur a penalty. The franchisee must pay Hyatt a royalty fee of $5,000 per day until the de-identification is completed to Hyatt's satisfaction. Additionally, Hyatt's representatives are permitted to enter the hotel to complete the de-identification process at the franchisee's expense.
This strict enforcement of de-identification highlights the importance The Standardx places on protecting its brand and ensuring a clean break when a franchise agreement ends. Prospective franchisees should be aware of these obligations and the potential financial consequences of non-compliance. It is crucial to plan for and execute the de-identification process promptly to avoid incurring daily penalties and additional expenses.