What is the exception to providing an updated Exhibit G after a Non-Control Transfer for The Standardx franchise?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days after the effective date of any Non-Control Transfer (other than transfers among then-existing Owners), Franchisee shall provide Hyatt an updated Exhibit G (if the previously effective version of Exhibit G has changed) or such other information as Hyatt reasonably requests from time to time concerning any new Non-Controlling Owners (other than Limited Interest Owners).
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, after a Non-Control Transfer, franchisees typically need to provide an updated Exhibit G to Hyatt within thirty days if the previously effective version of Exhibit G has changed. However, an exception exists for transfers among then-existing Owners.
Specifically, if the Non-Control Transfer occurs between owners who were already part of the franchise ownership structure, there is no requirement to provide an updated Exhibit G. This simplifies the process for internal restructuring or adjustments within the existing ownership group.
This exception acknowledges that transfers among existing owners do not fundamentally alter the ownership or control of the franchise in a way that necessitates a full update of Exhibit G. However, The Standardx can still request other information concerning any new Non-Controlling Owners (other than Limited Interest Owners).