What must happen before Hyatt Franchising, L.L.C. and a franchisee sign a Franchise Agreement for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin operating the Hotel, we or another member of the Hyatt Group will:
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- Approve a site for the Hotel that meets our requirements. We do not provide any site selection assistance or specify an area within which you may look for a site. We do not own hotel premises and lease them to franchisees. In determining whether to approve a site, we consider, among other things, demographic characteristics, traffic patterns, parking, visibility, allowed signage, the predominant character of the neighborhood, competition from other lodging facilities in the area, the nature of other businesses near the site, and other commercial characteristics (including the purchase price or rental obligations and other lease terms) and the proposed site's size, appearance, and other physical characteristics. You may not develop a Brand Hotel at a site that we do not approve. We and you will not sign a Franchise Agreement until you have located and we have approved the Hotel's site. If you are converting an existing hotel from another brand to the Hotel System, we will inspect the hotel and prepare a PIP to provide details on our upgrade requirements. Each Comfort Letter Party must sign a comfort letter or similar agreement that we reasonably specify. (Sections 2.1 and 2.7 of Franchise Agreement)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–64)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Hyatt Franchising, L.L.C. requires that a suitable site for the hotel be located and approved before a Franchise Agreement can be signed. The FDD specifies that The Standardx does not assist with site selection, nor do they lease hotel premises to franchisees.
In determining whether to approve a site, The Standardx considers various factors, including demographic characteristics, traffic patterns, parking, visibility, allowed signage, the neighborhood's character, competition from other lodging facilities, the nature of nearby businesses, commercial characteristics (like purchase price, rental obligations, and lease terms), and the site's size, appearance, and physical characteristics. The FDD emphasizes that a franchisee cannot develop a The Standardx hotel at a site that has not been approved by Hyatt Franchising, L.L.C.
For prospective franchisees, this means that securing an approved location is a critical first step in the process. The franchisee bears the responsibility of finding a site that meets The Standardx's requirements and obtaining approval from Hyatt Franchising, L.L.C. before moving forward with the franchise agreement. This process protects The Standardx brand by ensuring that each location meets their standards for success.