For The Standardx franchise, who is responsible for procuring software, equipment, and other goods needed for business operations?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Procurement of Third Party Components. All software, equipment, and other goods required for Franchisee's use in connection with its business operations will be procured directly by Franchisee from the appropriate third party vendor. Hyatt will not be responsible for procuring any third party deliverables for use by Franchisee unless otherwise agreed to by Hyatt in a separate writing approved by an authorized officer of Hyatt. Franchisee will comply with the terms of all underlying third party agreements, including all third party software license agreements. Franchisee shall also engage a third party service provider in accordance with this Agreement to support all third party hardware and software installed at the Hotel, and such engagement shall be in place as of the date Hyatt completes all Services.
Schedule 1
HOSTED SYSTEM AND SERVICES
HOSTED SYSTEM
OPERA Property Management System (PMS) Applicable Property Interfaces
SERVICES
Hyatt shall be responsible for:
- (i) Installation of the Hosted Hardware at the Facility.
- (ii) Hosting and monitoring of the Property Management System.
- (iii) Hosting, monitoring, maintenance and support of the Third Party Software, and the Hosted Hardware.
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 is primarily responsible for procuring the necessary software, equipment, and other goods required for their business operations. Specifically, the franchisee must directly source these items from appropriate third-party vendors. The Standardx will not be responsible for procuring any third party deliverables for use by the franchisee unless otherwise agreed to in writing by an authorized officer of The Standardx. The franchisee is also responsible for complying with the terms of all underlying third-party agreements, including software license agreements.
This arrangement places the onus on the franchisee to manage vendor relationships and ensure that all procured items meet The Standardx's standards and operational requirements. It also requires the franchisee to engage a third-party service provider to support all third-party hardware and software installed at the hotel, ensuring this support is in place by the time The Standardx completes its services. This requirement ensures that the franchisee has adequate technical support for the systems they implement.
However, The Standardx does take responsibility for the Hosted System, which includes the OPERA Property Management System (PMS) and applicable property interfaces. The Standardx is responsible for the installation of the Hosted Hardware at the Facility, as well as the hosting, monitoring, maintenance, and support of the Third Party Software and the Hosted Hardware. This division of responsibility means that while the franchisee handles general procurement, The Standardx manages the critical, integrated systems necessary for hotel operations.
Prospective franchisees should carefully consider the implications of this procurement structure, including the costs and responsibilities associated with sourcing and maintaining their own software and equipment. Understanding the specific requirements and standards set by The Standardx for these procurements will be crucial for ensuring smooth and compliant business operations.