Does the definition of 'ADS' for The Standardx franchise allow for Reasonable Deviations?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- "ADS" means the online travel agencies and other alternative distribution systems that Hyatt may periodically authorize or require for Franchisee's Hotel and other similarly situated Brand Hotels (subject to Reasonable Deviations).
"Reasonable Deviations" means that, if the market area or circumstances of a Brand Hotel warrant, then, in Hyatt's Reasonable Business Judgment, Hyatt may apply an aspect of the Hotel System, System Standard, requirement, fee or other term or condition to the Hotel in a manner which differs from the manner in which that aspect of the Hotel System, requirement, fee or other term or condition applies to one or more other similarly situated Brand Hotels.
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, the definition of 'ADS' does allow for 'Reasonable Deviations'. The FDD defines 'ADS' as the online travel agencies and other alternative distribution systems that Hyatt may periodically authorize or require for Franchisee's Hotel and other similarly situated Brand Hotels, subject to Reasonable Deviations.
This means that while The Standardx franchisees are generally required to use the online travel agencies and alternative distribution systems that Hyatt authorizes, there is some flexibility. Hyatt can allow for 'Reasonable Deviations' depending on the circumstances of the specific Brand Hotel.
The FDD defines 'Reasonable Deviations' as circumstances where, if the market area or circumstances of a Brand Hotel warrant, then, in Hyatt's Reasonable Business Judgment, Hyatt may apply an aspect of the Hotel System, System Standard, requirement, fee or other term or condition to the Hotel in a manner which differs from the manner in which that aspect of the Hotel System, requirement, fee or other term or condition applies to one or more other similarly situated Brand Hotels. This gives Hyatt some discretion to tailor the ADS requirements to the specific needs of each The Standardx franchise.