For The Standardx franchise, who must agree upon the Consultants required for the Project?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must engage and retain at its own expense all Consultants required for the Project, each of whom shall be agreed upon by Franchisee and Hyatt. Hyatt may, at its option, nominate to Franchisee each category of Consultants (with the exception of structural engineers) enumerated in section 1.2 of Exhibit A. To the extent that Franchisee has any existing consultants, contractors, or other design specialists and the work quality or the performance of any such existing consultants, contractors, or specialists does not meet Hyatt's standards, or is otherwise deemed unacceptable to Hyatt, Franchisee agrees to replace such consultants, contractors, or specialists with Consultants enumerated on Exhibit A and which have been agreed to by Hyatt, promptly at Hyatt's direction.
In addition to the Consultants, Franchisee agrees to engage and retain at its own expense a Project Manager, which shall be mutually selected by Hyatt and Franchisee. Franchisee shall engage the Project Manager within three (3) months following the effective date of the Franchise Agreement.
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 Franchisee and Hyatt must agree upon all Consultants required for the Project. The franchisee is responsible for engaging and retaining these consultants at their own expense. Hyatt has the option to nominate consultants for each category, excluding structural engineers, from a list in Exhibit A.
If the franchisee has existing consultants whose work doesn't meet Hyatt's standards, The Standardx requires the franchisee to replace them with consultants from Exhibit A who are approved by Hyatt. Additionally, the Project Manager must be mutually selected by both Hyatt and the franchisee within three months of the franchise agreement's effective date.
This requirement ensures that all consultants meet Hyatt's standards and that the project aligns with Hyatt's vision. For a prospective franchisee, this means they will need to collaborate closely with Hyatt on consultant selection and be prepared to replace existing consultants if necessary. This could potentially increase costs and time during the project's planning and development phases.