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As a franchisee of The Standardx, am I required to comply with all System Standards, including employment-related policies?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

e document, this 2-day briefing takes place in a classroom or virtual setting and covers the following topics:

TRAINING PROGRAM Orientation

Provide you access to the System Standards. You must comply with the
System Standards, as we periodically modify them, except for any employment-related or
other policies and procedures which are clearly indicated in the System Standards as being
for your optional use. We may communicate the System Standards to you using various
means that we may periodically establish, including electronic media and/or written
materials, and you must continuously monitor and access any updates to the System
Standards or other aspects of the Hotel System. The System Standards and any passwords
or other digital identifications necessary to access the System Standards are confidential.

GMU

The Hotel's proposed general manager, whether newly hired or promoted, must attend GMU, which provides an overview of Hyatt's brand requirements and the tools made available by us in support of these requirements. GMU consists of self-paced eLearning, virtual instructor-led training, in-person training, learning assessments, and a final virtual presentation to our leadership team. The Hotel's proposed general manager must complete GMU (including the final learning

assessment and a virtual presentation to our leadership team) at least 6 months before the Hotel's opening date or within 6 months after the date of hire or promotion (as applicable) for a new general manager at an existing Brand Hotel.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–64)

What This Means (2025 FDD)

According to The Standardx's 2025 Franchise Disclosure Document, franchisees must comply with the System Standards, but compliance with employment-related policies is optional. The System Standards may be communicated through electronic or written materials, and franchisees are responsible for staying updated on any changes to these standards. Franchisees must also keep any passwords or digital identifications needed to access the System Standards confidential.

While The Standardx provides materials, guidance, or assistance on employment-related policies, these are for the franchisee's optional use. The franchisee (or their approved management company) determines the extent to which these materials apply to the hotel's employees. The Standardx does not dictate or control labor or employment matters for franchisees and their employees.

The Standardx franchisee is solely responsible for determining the terms and conditions of employment for all hotel employees, including decisions about hiring, firing, and discipline. They are also responsible for all other aspects of the hotel's labor relations and employment practices. This means that while The Standardx offers resources, the franchisee has the autonomy to manage their employees in accordance with applicable laws and their own business strategies.

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.