How does The Standardx franchise agreement define an 'Affiliate'?

According to The Standardx's 2025 Franchise Disclosure Document, an 'Affiliate' is defined in Exhibit A of the Brand Hotel Franchise Agreement. The agreement specifies that an affiliate, with respect to a party, includes any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party.

For a prospective franchisee, this definition is important because it clarifies the scope of relationships that could be considered affiliated with either the franchisee or the franchisor, Hyatt. Understanding this definition is crucial for several reasons, including assessing potential conflicts of interest, understanding the scope of any non-compete obligations, and determining responsibility or liability in certain situations.

The definition also specifies that 'control' means the power to direct or cause the direction of management and policies. This clarification is significant because it focuses not just on ownership but also on the ability to influence the operational decisions of an entity. This broad definition ensures that The Standardx can account for various business structures and relationships when enforcing the franchise agreement.

In practical terms, if a franchisee has a business partner or owns another company that could be seen as influencing the management or policies of The Standardx franchise, that entity could be considered an affiliate. Similarly, any entity that controls The Standardx (the franchisee) would also be considered an affiliate. This definition helps to maintain the integrity and standards of The Standardx brand across all its franchise locations.