When must the franchisee open a Pre-Opening Sales Office for The Standardx, and what is the dependency for this action?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.4 Pre-Opening Sales Office.
Promptly after the Technology System is installed at the Hotel, at Hyatt's option, Franchisee must open and begin operating a Pre-Opening Sales Office at the Site, staffed by the Hotel's director of sales.
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 must open a Pre-Opening Sales Office at the hotel site promptly after the Technology System is installed. However, this is only required at Hyatt's option. The office must be staffed by the Hotel's director of sales.
This means that whether or not a franchisee is required to operate a pre-opening sales office is not guaranteed and depends on Hyatt's decision. If required, the franchisee needs to be prepared to set up the office immediately after the technology system installation, ensuring the director of sales is ready to staff it.
For a prospective franchisee, this highlights the importance of understanding all pre-opening requirements and potential costs associated with setting up and running a sales office. Franchisees should clarify with The Standardx during their due diligence the likelihood of this requirement being enforced and the expected duration and operational costs of the pre-opening sales office to accurately assess their investment and operational readiness.