Can Hyatt modify an unenforceable System Standard for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite Hyatt's right to establish and periodically to modify System Standards for the Hotel and modify the Hotel System as Hyatt deems best, Franchisee retains the right to control, and responsibility for, the Hotel's day-to-day management and operation and implementing and maintaining System Standards at the Hotel. Because complete and detailed uniformity under many varying conditions might not be possible or practical, Hyatt reserves the right, as Hyatt deems best, to vary the Hotel System and System Standards for any Brand Hotel based upon the peculiarities of any condition or factors that Hyatt considers important to that hotel's successful operation. Franchisee has no right to require Hyatt to grant Franchisee a similar variation or accommodation.
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, Hyatt has the right to establish and periodically modify System Standards for the Hotel and modify the Hotel System as Hyatt deems best. These System Standards regulate any aspect of the Hotel's operation, including the products and services that the Hotel uses and offers. This includes participation in marketing, reservation services, rate and room inventory management, advertising, guest frequency and loyalty, social responsibility, discount or promotional, training and operating programs, including a property management system that interfaces with the CRS.
Despite Hyatt's right to modify System Standards, the franchisee retains the right to control, and responsibility for, the Hotel's day-to-day management and operation and implementing and maintaining System Standards at the Hotel. Hyatt also reserves the right to vary the Hotel System and System Standards for any Brand Hotel based upon the peculiarities of any condition or factors that Hyatt considers important to that hotel's successful operation. However, the franchisee has no right to require Hyatt to grant Franchisee a similar variation or accommodation.
While the FDD specifies Hyatt's right to modify System Standards, it does not explicitly address whether Hyatt can modify an unenforceable System Standard. The document states that the franchisee must comply with the System Standards, as Hyatt periodically modifies them, except for any employment-related or other policies and procedures which are clearly indicated in the System Standards as being for Franchisee's optional use. If there is a dispute over their contents, Hyatt's master version of the System Standards controls. A prospective franchisee should seek clarification from Hyatt regarding the process for addressing and resolving disputes related to the enforceability of System Standards.