For The Standardx franchise, what entities must the franchisee's insurance policy specifically name as additional insureds?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
h all applicable obligations under this ARTICLE IX that Hyatt periodically specifies, including by naming Hyatt and any Affiliates that Hyatt periodically designates (and Hyatt's and their employees and agents) as additional insureds and delivering certificates of insurance to Hyatt. If Franchisee fails for any reason to procure or maintain the insurance required by this Agreement, Hyatt shall have the right and authority (although without any obligation to do so) to immediately procure such insurance and to charge Franchisee the cost together with a reasonable fee for Hyatt's expenses. Hyatt shall have the right to review Franchisee's insurance coverage for the foregoing requirements from time to time during the Term and to update requirements for insurance coverage in response to material changes in the circumstances of the Hotel, then-current industry practices, and changes in economic conditions. Franchisee shall promptly comply with Hyatt's updated requirements.
ARTICLE X
CONDEMNATION AND DAMAGE
- 10.1 Condemnation. Franchisee must immediately notify Hyatt of any proposed taking all or a substantial portion of the Hotel by eminent domain, condemnation or expropriation. If the parties do not otherwise agree to relocate the Hotel, then either party may terminate this Agreement immediately upon written notice to the other. If Franchisee and its Owners sign a Termination Agreement, then Franchisee shall not be required to pay liquidated damages pursuant to Section 16.5 at the time of termination. However, such Termination Agreement shall provide that if Franchisee or any of its Affiliates begins construction on or operation of a hotel of the same Hotel Type at any location within the Area of Protection at any time during the twenty-four (24) month period following the effective date of termination of this Agreement, other than a Hyatt Network Hotel or a hotel that was already under contract to be developed at that particular location within the Area of Protection on the date that the Termination Agreement is signed, then Franchisee or its Owners must pay Hyatt liquidated damages equal to the amount set forth in Exhibit B-1 multiplied by the number of guest rooms in that new hotel of the same Hotel Type. If Franchisee and its Owners fail to sign such Termination Agreement within a reasonable time after Hyatt delivers it to Franchisee, then Franchisee must pay Hyatt liquidated damages pursuant to Section 16.5 at the time of termination, in addition to complying with its other post-termination obligations under this Agreement.
- 10.2 Damage. If the Hotel is damaged by fire, flood, accident, hurricane or other casualty, Franchisee must notify Hyatt immediately.
- (a) If the cost to repair the damage is less than or equal to the Damage Threshold, then Franchisee must repair the damage promptly according to the System Standards and this Agreement's other terms and conditions. If the damage or repair requires Franchisee to close all or any portion of the Hotel, then Franchisee must commence reconstruction as soon as practicable (but in any event within four (4) months) after closing the Hotel and reopen for continuous business operations as a Brand Hotel as soon as practicable (but in any event within twenty-four (24) months) after closing the Hotel, but not without complying with this Agreement's other terms and conditions.
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's insurance policy must specifically name Hyatt and its Affiliates (including Hyatt's and their employees and agents) as additional insureds. This requirement ensures that Hyatt and its related parties are protected under the franchisee's insurance coverage for potential liabilities arising from the operation of The Standardx franchise.
This requirement extends to any F&B Operator (food and beverage) and Spa Operator, if applicable, operating within the franchise. The franchisee must ensure these operators also maintain insurance that names Hyatt and any Affiliates that Hyatt periodically designates (along with their employees and agents) as additional insureds. Certificates of insurance must be delivered to Hyatt as proof of coverage.
If the franchisee fails to maintain the required insurance, Hyatt has the right to procure insurance on behalf of the franchisee and charge the franchisee for the cost, including a reasonable fee for Hyatt's expenses. Hyatt also retains the right to review the franchisee's insurance coverage periodically and update the insurance requirements based on changes in the hotel's circumstances, industry practices, and economic conditions. The franchisee is obligated to comply promptly with any updated requirements from Hyatt.
For owners receiving services from Hyatt, the insurance policy must also name Hyatt and its Affiliates (and Hyatt's and their employees and agents) as additional insureds. The minimum coverage amount for advertising liability and contractual liability is $2,000,000.00 per occurrence or the then-current minimum coverage amount designated by Hyatt. This requirement ensures that Hyatt is protected from potential liabilities arising from the services provided to the owner.