What is The Standardx franchisee prohibited from doing regarding diverting business?

According to The Standardx's 2025 Franchise Disclosure Document, franchisees are prohibited from diverting business away from Brand Hotels or other Hyatt Network Hotels. Specifically, franchisees must refer guests and customers to Brand Hotels or other Hyatt Network Hotels whenever reasonably possible. The Standardx franchisees are not allowed to use the Hotel or the Hotel System to promote a competing business or other lodging facility. Furthermore, they are prohibited from diverting business from the Hotel to a competing business. This is to ensure that the franchisee is prioritizing the The Standardx brand and network, and not using its resources to benefit competitors.

This requirement is fairly standard in the franchise industry, as franchisors want to protect their brand and ensure that franchisees are focused on growing the system as a whole. By preventing franchisees from diverting business to competitors, The Standardx aims to maintain brand consistency and maximize revenue for all franchisees within the network. This restriction helps to maintain the integrity of the The Standardx brand and prevent conflicts of interest.

For a prospective franchisee, this means they must be fully committed to The Standardx brand and not have any conflicting business interests in the lodging industry. It is important to understand the implications of this restriction and ensure that they are comfortable with the level of commitment required. A franchisee should carefully consider this restriction and how it might impact their business strategy before investing in a The Standardx franchise.