Can Hyatt delegate its obligations under The Standardx franchise agreement to third parties?

According to The Standardx's 2025 Franchise Disclosure Document, Hyatt has the right to delegate its obligations under the franchise agreement to third parties. Specifically, Hyatt may make arrangements with its affiliates or other third parties to provide various functions related to the Hotel System, including development, marketing, operations, administration, technical, and support. Hyatt can also delegate the performance of any portion or all of its obligations under the agreement to third-party designees, whether these designees are its affiliates, agents, or independent contractors.

This delegation means that franchisees may interact with different entities than just Hyatt for various aspects of the franchise system. These third-party designees are obligated to perform the delegated functions for the franchisee in compliance with the franchise agreement. This ensures that even if Hyatt delegates responsibilities, the quality and standards expected under the agreement must still be met.

For a prospective The Standardx franchisee, this clause indicates that the support and services they receive may come from various sources, not just directly from Hyatt. While Hyatt retains the overall responsibility for ensuring these obligations are met, the day-to-day interactions and support could be handled by third-party providers. It is important for franchisees to understand that Hyatt may modify these arrangements periodically.

This delegation provision is fairly common in franchising, as it allows the franchisor to leverage specialized expertise and resources. However, franchisees should confirm that clear lines of communication and accountability are maintained, regardless of who is providing the service. Franchisees should also ensure that they understand how to address any issues or concerns that may arise with these third-party providers.