From whom must The Standardx franchisees acquire Mandatory Services?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Mandatory Services and Non Mandatory Services comprise the System Services. If you are in full compliance with your obligations under the Franchise Agreement, we or one or more members of the Hyatt Group will provide you those System Services that we periodically specify. You must participate in all Mandatory Services and related programs, and may (at your option) participate in any or all Non-Mandatory Services and related programs, in the manner that we periodically specify. You must acquire all Mandatory Services (as we periodically modify them) only from a member of the Hyatt Group. We may periodically add to, delete from, and otherwise modify these System Services, and the scope of and manner of providing System Services, upon notice to you. Also, due to the differences in products, services, markets and hospitality experiences among Brand Hotels and other Hyatt Network Hotels, we may, where we deem appropriate in our judgment: (a) classify certain System Services as Mandatory Services for the Hotel which we classify as Non-Mandatory Services or do not offer to other Brand Hotels and/or other Hyatt Network Hotels; (b) not provide to the Hotel certain System Services that we provide to other Brand Hotels and/or other Hyatt Network Hotels; and (c) limit the scope of those System Services provided to franchised Brand Hotels, such as by limiting the access that franchised Brand Hotels have to certain customer and other proprietary information for Hyatt Network Hotels other than the Hotel. We describe the current System Services and the current charges for those System Services in Item 6, including all of the services offered pursuant to the Central Services Agreement, which are generally Non-Mandatory Services but in certain circumstances may be designated as Mandatory Services as a condition of our approval of the Hotel's management company, as consideration for other items negotiated as part of the Franchise Agreement, or as part of the requirements of the Quality Assurance and Compliance Program.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees must acquire all Mandatory Services only from a member of the Hyatt Group. The FDD specifies that if a franchisee is in full compliance with their obligations under the Franchise Agreement, The Standardx or one or more members of the Hyatt Group will provide those System Services that they periodically specify. Mandatory Services and Non-Mandatory Services comprise the System Services. Franchisees must participate in all Mandatory Services and related programs, but may choose to participate in any or all Non-Mandatory Services and related programs.
The Standardx may periodically add to, delete from, and otherwise modify these System Services, and the scope of and manner of providing System Services, upon notice to the franchisee. The FDD also notes that due to differences in products, services, markets and hospitality experiences among Brand Hotels and other Hyatt Network Hotels, The Standardx may classify certain System Services as Mandatory Services for the Hotel which they classify as Non-Mandatory Services or do not offer to other Brand Hotels and/or other Hyatt Network Hotels. They may also not provide to the Hotel certain System Services that they provide to other Brand Hotels and/or other Hyatt Network Hotels, and limit the scope of those System Services provided to franchised Brand Hotels.
The current System Services and the current charges for those System Services are described in Item 6, including all of the services offered pursuant to the Central Services Agreement, which are generally Non-Mandatory Services but in certain circumstances may be designated as Mandatory Services as a condition of The Standardx's approval of the Hotel's management company, as consideration for other items negotiated as part of the Franchise Agreement, or as part of the requirements of the Quality Assurance and Compliance Program. This means that the specific services considered mandatory can vary and are subject to change, requiring franchisees to stay updated with The Standardx's specifications.