What are the Franchisee's options if Hyatt revokes approval of the Management Company for The Standardx?

According to The Standardx's 2025 Franchise Disclosure Document, if Hyatt revokes its approval of the Management Company, the franchisee must take specific actions. The franchisee is required to promptly terminate the management arrangement with the current management company, if one is in place. Following this termination, the franchisee has two options for continuing the hotel's operation.

First, if Hyatt approves the franchisee to directly manage the hotel, the franchisee can assume direct control of the hotel's management and operation. This implies the franchisee must meet Hyatt's qualifications and standards for hotel management. Alternatively, the franchisee can engage another management company, but this new company must receive written approval from Hyatt before taking over the hotel's management.

This stipulation ensures that The Standardx maintains its brand standards and operational quality, even in the event of a management change. The need for Hyatt's approval in both scenarios—either the franchisee managing directly or hiring a new management company—underscores Hyatt's control over the brand and its standards. For a prospective franchisee, this means understanding and being prepared to act swiftly to maintain compliance and operational continuity should Hyatt revoke approval of the initial management company.