What happens if a The Standardx franchisee fails to complete de-identification to Hyatt's satisfaction?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's expense.
- 16.2 Pay Amounts Owed. Unless otherwise provided in this Agreement, within five (5) days after the termination or expiration of this Agreement, Franchisee must pay all amounts owed to Hyatt and its Affiliates under this Agreement or any other agreement.
- 16.3 Contacting Customers. Upon this Agreement's termination or expiration for any reason, Hyatt has the right to contact those individuals or entities who have reserved rooms with Franchisee through the CRS, and any other Hotel customers, and inform them that Franchisee's lodging facility no longer is part of the Brand Hotel network. Hyatt also has the right to inform those individuals, entities and customers of other Brand Hotels and Hyatt
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, if a franchisee fails to comply with de-identification provisions after the franchise agreement terminates or expires, they will face specific financial and operational consequences. The franchisee must pay The Standardx a royalty fee of $5,000 per day until the de-identification is completed to The Standardx's satisfaction. Additionally, the franchisee must allow The Standardx's representatives to enter the hotel to complete the de-identification process, with all expenses borne by the franchisee.
De-identification involves several steps to ensure the hotel is no longer identified as a The Standardx branded property. These steps include returning all copyrighted materials and materials containing confidential information or proprietary marks, removing structures and items identifying the Hotel System (including trade dress, signage, and FF&E), and stopping all uses of proprietary marks and confidential information in connection with any F&B or Spa Operations. The franchisee must also change the hotel's telephone listing and ensure that the phone is not answered in a way that suggests affiliation with The Standardx or Hyatt.
The franchisee is required to maintain a conspicuous sign at the registration desk stating that the hotel is no longer associated with The Standardx, and they must not represent to customers or the public that the hotel is or was a The Standardx, except when informing investors or lenders about their experience operating a The Standardx. The franchisee has fifteen days after the agreement terminates or expires to complete all de-identification obligations and provide written certification of completion to The Standardx. These measures are designed to protect The Standardx's brand and prevent customer confusion after a franchise agreement ends.