factual

For The Standardx franchise, does the definition of 'ADS' include online travel agencies?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

  • "ADS" means the online travel agencies and other alternative distribution systems that Hyatt may periodically authorize or require for Franchisee's Hotel and other similarly situated Brand Hotels (subject to Reasonable Deviations).

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, ADS is defined to include online travel agencies. Specifically, the document defines "ADS" as online travel agencies and other alternative distribution systems that The Standardx may periodically authorize or require for the franchisee's hotel and other similarly situated Brand Hotels, subject to reasonable deviations. This means that as a franchisee, you may be required to participate in certain online travel agencies that The Standardx approves.

This requirement ensures brand consistency and potentially leverages the franchisor's negotiated rates and marketing efforts with these online platforms. However, it also means that franchisees may not have complete autonomy over which online channels they use to market their hotel and accept reservations.

Prospective franchisees should inquire about which specific online travel agencies are currently approved or required, the terms of The Standardx's agreements with these agencies, and any associated costs or commissions that the franchisee will be responsible for. Understanding these details is crucial for assessing the potential revenue and expenses related to online bookings.

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.