For The Standardx franchise, does the definition of 'Brand Damages' include lost Royalty Fees?

According to The Standardx's 2025 Franchise Disclosure Document, Brand Damages do include lost Royalty Fees. The document defines 'Brand Damages' as encompassing various financial and reputational losses that The Standardx could incur due to a franchisee's actions or termination of the franchise agreement.

Specifically, the definition includes not only the lost Royalty Fees but also lost System Services Charges, lost market penetration and goodwill, loss of Hotel System representation in the Hotel's market area, confusion of national accounts and individual customers, disadvantage in competing for national accounts and other types of bookings for Brand Hotels, lost opportunity costs, and expenses that Hyatt will incur in developing or finding another franchisee to develop another Brand Hotel in the Hotel's market area. This comprehensive definition suggests that The Standardx aims to recover a wide range of potential damages beyond just the immediate loss of fees.

For a prospective franchisee, this means that any actions that harm the brand's reputation or disrupt the Hotel System could result in significant financial liabilities. It is important to adhere to the franchise agreement and maintain the standards set by The Standardx to avoid triggering these damage clauses. Understanding the full scope of 'Brand Damages' is crucial for managing risk and ensuring the long-term success of the franchise.