What is the definition of 'Brand' according to The Standardx FDD?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section | Subject | Applicable Term | ||
|---|---|---|---|---|
| Reference | ||||
| 6.1(c) | Design Services Review Fee payment date(s) | • Initial payment of $: Effective Date • Remaining $: paid in _____________ () equal monthly installments of $_______ each, with the first such installment due and payable on , 20 | ||
| 6.1(c) | Alternative Design Review Fee amount | $_____________ | ||
| 6.2(a) | Royalty Fee | Five percent (5%) of the Hotel’s Gross Rooms Revenue accrued during the preceding month | ||
| 10.1 | Per room liquidated damages – condemnation | Five Thousand Dollars ($5,000) | ||
| 16.5 | Liquidated Damages | (a) the lesser of thirty-six (36) or the number of months then remaining in this Agreement’s term had it not been terminated, multiplied by (b) the sum of (i) the Average Monthly Revenue times five percent (5%) for lost future Royalty Fees, plus (ii) the Average Monthly Revenue times three and one-half percent (3.5%) for lost future System Services Charges | ||
| 19.2(e) | Franchisee Acknowledgments in Certain States | The following is added as a new Section 19.2(e): The StandardX™ brand and concept were launched in the United States in June 2025, there are few hotels operating under the StandardX™ brand as of the Effective Date, and there is no guarantee or assurance that the brand and concept will be successful in the marketplace or that Hyatt will not make significant modifications to the Hotel System, brand and concept as they are further developed. | ||
| Exhibit A | Definition of “Brand” | The StandardX™ |
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 term 'Brand' is defined as The StandardX™ itself. This definition is found within Exhibit A of the Brand Hotel Franchise Agreement, which outlines various defined terms used throughout the agreement.
For a prospective franchisee, this definition clarifies that when the agreement refers to 'Brand,' it is specifically referring to The StandardX™ hotel brand. This is important for understanding the scope and application of various clauses within the franchise agreement, such as those related to brand standards, marketing, and intellectual property.
It is also important to note that the FDD states that the StandardX™ brand and concept were launched in the United States in June 2025, and as of the effective date of the agreement, there are few hotels operating under the StandardX™ brand. The FDD also states that there is no guarantee that the brand and concept will be successful or that Hyatt will not make significant modifications to the Hotel System, brand, and concept as they are further developed. This acknowledgment highlights the relative newness of the brand and the potential risks and uncertainties associated with investing in a newly launched franchise system.