factual

In ensuring compliance with approved design documentation and minimum standards for The Standardx franchise, what activities may Hyatt engage in?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.1. Hyatt may, for the purpose of ensuring compliance with the approved design documentation and minimum standards, engage in the following activities:
    • Undertake site visits in an amount and on a schedule as mutually agreed by Franchisee and Hyatt, together with provision of reports and recommendations
    • Request, as is reasonably diligent, the submittals of subcontractors' shop drawings and supply specifications together with the relevant consultants' review comments and recommendations
    • Provide comments, as appropriate for design intent only, on select shop drawings and supply specifications
    • Liaise with appointed Project Manager on site progress, scheduling and the inspection sequencing and the preparation for the operation of the Hotel
    • Coordinate the pre-opening inspection of fire and life safety systems by a consultant that is pre-qualified by Hyatt, at Franchisee's expense
    • Review and comment on system, equipment, material, and manufacturer vendor selections and submittals, especially for critical systems/equipment including, but not limited to, chillers, boilers, emergency generators, transformers, fire detection and alarm systems, building automation systems, security systems, elevators and escalators, lighting control systems, audio/visual systems, voice and data systems, TV systems, water treatment systems, air handling systems, etc.

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 engage in several activities to ensure compliance with approved design documentation and minimum standards during the construction phase. These activities include conducting site visits based on a mutually agreed schedule with the franchisee, providing reports and recommendations, and requesting submittals of subcontractors' shop drawings and supply specifications, along with consultant reviews. Hyatt may also provide comments on select shop drawings for design intent, liaise with the project manager on site progress, and coordinate pre-opening inspections of fire and life safety systems by a pre-qualified consultant at the franchisee's expense. Hyatt also reviews and comments on system, equipment, material, and manufacturer vendor selections and submittals, especially for critical systems like chillers, boilers, and security systems.

These measures are intended to help The Standardx franchisee adhere to the brand's standards and ensure the hotel meets Hyatt's requirements. By undertaking site visits and reviewing documentation, Hyatt aims to guide the franchisee through the construction process and address any potential issues early on. The franchisee benefits from Hyatt's expertise in hotel design and construction, which can help avoid costly mistakes and ensure a consistent brand experience for guests.

However, it is important to note that while Hyatt provides guidance and reviews, the ultimate responsibility for compliance with legal requirements and the completeness of the design and construction documents rests with the franchisee and their consultants. The franchisee must ensure that all consultants' and contractors' contracts stipulate that all concepts, plans, and specifications are submitted for approval to both the franchisee and Hyatt before implementation. This process does not relieve the franchisee or their consultants of their responsibility to ensure the project complies with all applicable legal requirements. Hyatt's involvement is designed to assist the franchisee in meeting their obligations, but the franchisee remains accountable for the project's overall success and compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.