What is The Standardx franchisee required to do before changing the bank or financial institution used in connection with the operation of the Hotel?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may not change its bank, financial institution, or account used in connection with the operation of the Hotel without first telling Hyatt.
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 inform The Standardx before changing the bank, financial institution, or account used for the hotel's operations. This requirement is in place to ensure that The Standardx can continue to receive payments via electronic funds transfer (EFT) without interruption.
Specifically, The Standardx mandates that all payments for Royalty Fees, System Services Charges, and other amounts due to The Standardx or any member of the Hyatt Group be made via EFT. The franchisor also retains the right to modify the payment procedures periodically.
This requirement ensures that funds are available in the franchisee's account to cover payments when they are due. By requiring notification before a change in banking arrangements, The Standardx aims to maintain a smooth and reliable payment process, avoiding potential late fees or disruptions in service.