Is a franchisee of The Standardx required to participate in a Cooperative advertising program?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt may identify a region in which two (2) or more Brand Hotels are located in order to establish a local or regional advertising cooperative (a "Cooperative"). Hyatt may form, change, dissolve and merge Cooperatives. The Cooperative's purpose will be to collect funds from its members and to plan, discuss, organize, develop, utilize, produce, disseminate, and implement marketing, advertising and promotional programs and materials on a collective basis (and to cover related expenses) for participating Brand Hotels. Hyatt will not require Franchisee to participate in a Cooperative. However, if Franchisee chooses to participate in the Cooperative, Franchisee must do so according to the Cooperative's rules, including paying the Hotel's allocable share of any advertising, marketing, promotional and other programs that the Cooperative conducts. All restrictions under this Agreement relating to any advertising, marketing or promotional programs that Franchisee conducts also apply to any such programs that the Cooperative conducts.
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 not required to participate in a Cooperative advertising program. The Standardx may identify a region with two or more Brand Hotels to establish a Cooperative. The purpose of this Cooperative is for members to pool funds and collectively plan and implement marketing and advertising programs for participating hotels. However, participation is optional for franchisees.
If a The Standardx franchisee chooses to participate in the Cooperative, they must adhere to the Cooperative's rules, including paying their share of advertising, marketing, and promotional programs. All restrictions under the franchise agreement relating to advertising and marketing programs also apply to any programs the Cooperative conducts. This ensures that even when participating in a cooperative, the franchisee remains aligned with The Standardx's overall brand standards and marketing strategies.
While participation in a Cooperative advertising program is optional, The Standardx requires franchisees to participate in other advertising and marketing activities. Franchisees must participate in and use all advertising, marketing, and promotional activities, materials, and programs that The Standardx periodically requires for similarly-situated Brand Hotels, subject to reasonable deviations. This mandatory participation ensures brand consistency and coordinated marketing efforts across all The Standardx locations.