Is The Standardx franchisee required to comply with employment-related policies and procedures outlined in the System Standards?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt shall provide Franchisee access to the System Standards during the Term.
Franchisee must comply with the System Standards, as Hyatt periodically modifies them, except for any employment-related or other policies and procedures which are clearly indicated in the System Standards as being for Franchisee's optional use.
Hyatt and Franchisee agree that any materials, guidance or assistance that Hyatt provides with respect to employment-related policies or procedures are solely for Franchisee's (and/or the Management Company's) optional use. Those materials, guidance and assistance do not form part of the mandatory System Standards. Franchisee (or the Management Company) will determine to what extent, if any, these materials, guidance or assistance should apply to the Hotel's employees. Franchisee acknowledges that Hyatt does not dictate or control labor or employment matters for franchisees and their employees. Franchisee (or the Management Company) is solely responsible for determining the terms and conditions of employment for all Hotel employees (including Core Management), for all decisions concerning the hiring, firing and discipline of Hotel employees, and for all other aspects of the Hotel's labor relations and employment practices.
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, franchisees are generally required to comply with the System Standards as periodically modified by The Standardx. However, compliance with employment-related policies and procedures within those System Standards is optional for the franchisee.
The Standardx clarifies that any materials, guidance, or assistance it provides regarding employment-related policies are for the franchisee's optional use. These resources do not constitute mandatory System Standards. The franchisee, or their Management Company, has the discretion to decide the extent to which these materials apply to the Hotel's employees.
The Standardx emphasizes that it does not dictate or control labor or employment matters for its franchisees. The franchisee is solely responsible for determining the terms and conditions of employment, including hiring, firing, discipline, and all other aspects of labor relations for Hotel employees, including the Core Management team. This indicates that while The Standardx sets standards for the overall operation, franchisees maintain control over their employees' management.