For The Standardx franchise, does the definition of 'ADS' include alternative distribution systems?

According to The Standardx's 2025 Franchise Disclosure Document, ADS is defined as online travel agencies and other alternative distribution systems. Specifically, these are the systems that Hyatt may periodically authorize or require for the franchisee's hotel and other similarly situated Brand Hotels, subject to reasonable deviations.

This definition means that The Standardx franchisees may be required to use certain online travel agencies or other distribution channels to market and manage their hotel's room inventory. The franchisor, Hyatt, retains the right to specify which systems the franchisee must use, ensuring brand consistency and potentially leveraging negotiated rates or agreements with these distribution partners.

However, the definition also includes a provision for 'Reasonable Deviations,' suggesting that franchisees may have some flexibility or ability to request exceptions based on their specific circumstances. It is important for prospective franchisees to understand what constitutes a 'Reasonable Deviation' and the process for requesting such deviations.

Overall, this clause allows The Standardx to maintain control over distribution channels while providing some flexibility for individual franchisees. Prospective franchisees should inquire about the specific ADS that are currently mandated, the associated costs, and the criteria for requesting deviations from these requirements.