obligation

What must a The Standardx franchisee do before opening the Hotel in affiliation with the Proprietary Marks?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 2.5 Opening the Hotel.

Franchisee may not open or begin operating the Hotel in affiliation with the Proprietary Marks until Hyatt has notified Franchisee in writing that Franchisee has satisfied all of the pre-opening conditions set forth in the System Standards or otherwise in writing.

Franchisee must open and begin operating the Hotel under the Hotel System and in affiliation with the Proprietary Marks on or before the Opening Deadline.

  • 5.1 Pre-Opening Marketing. At least one hundred twenty (120) days before the Hotel's Opening Date, Franchisee must prepare and submit to Hyatt for its approval a written preopening marketing program that satisfies Hyatt's requirements and contemplates spending at least the amount set forth in Exhibit B-1. Franchisee must change the program as Hyatt specifies and implement the approved program.

Before opening the Hotel for business in affiliation with the Proprietary Marks, members of the Core Management team and other Hotel personnel whom Hyatt specifies must attend and successfully complete Hyatt's brand standard training programs and curriculum for their respective positions.

If this Agreement anticipates Franchisee's conversion of an existing franchised or managed facility to a Brand Hotel, then before any Proprietary Marks (including signage) are installed or displayed at the Site, and before Franchisee opens a Pre-Opening Sales Office or the Hotel is authorized to open as a Brand Hotel, Franchisee must submit evidence reasonably satisfactory to Hyatt of the termination of Franchisee's previous franchise or management agreement in accordance with applicable legal requirements.

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, a franchisee must fulfill several requirements before opening their hotel under The Standardx brand. Specifically, the franchisee cannot open or begin operating the Hotel until The Standardx provides written notification that all pre-opening conditions outlined in the System Standards have been met.

Additionally, at least 120 days before the planned opening date, the franchisee is required to prepare and submit a pre-opening marketing program to The Standardx for approval, which must meet The Standardx's requirements and budget, as detailed in Exhibit B-1. The franchisee must also ensure that members of the Core Management team and other designated hotel personnel attend and successfully complete The Standardx's brand standard training programs for their respective positions before opening.

If the franchisee is converting an existing hotel to The Standardx brand, they must provide evidence, satisfactory to The Standardx, that their previous franchise or management agreement has been properly terminated before installing any Proprietary Marks or opening a Pre-Opening Sales Office. Furthermore, promptly after the Technology System is installed at the Hotel, the franchisee must open and begin operating a Pre-Opening Sales Office at the Site, staffed by the Hotel's director of sales, if The Standardx elects this option.

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.