Is Hyatt required to obtain consent from The Standardx Owner to transfer or assign the agreement?

According to The Standardx's 2025 Franchise Disclosure Document, Hyatt, the franchisor, generally does not need consent from The Standardx Owner to transfer or assign the franchise agreement. Specifically, Hyatt may change its ownership or form and/or assign the agreement and any other agreement to a third party without restriction. This means that a prospective franchisee should be aware that the entity they initially contract with may not be the same entity throughout the term of the agreement.

However, there are specific instances where the franchisee or owner does not need Hyatt's consent for transfers. A Controlling Owner can transfer their interest in The Standardx to an entity they fully own without prior written consent from Hyatt, provided the transferee isn't a Competing Brand Owner or a Sanctioned Person, and Hyatt is notified within 30 days of the transfer. Similarly, an individual Owner can transfer their interest to a trust for estate planning purposes without Hyatt's consent, as long as the Owner remains a trustee and complies with the agreement, notifying Hyatt 10 days beforehand.

Franchisee Owners can also pledge their ownership interests in any Non-Controlling Owner to a Lender without Hyatt's prior approval. The Standardx may also mortgage or grant a Security Interest in the Hotel and its assets (but not the Agreement) to a Lender, and Franchisee's Owners may pledge their ownership interests in Franchisee or any Controlling Owner to a Lender, without having to obtain Hyatt's prior approval, provided the Lender signs Hyatt's form of comfort letter. These exceptions provide some flexibility for ownership and financial arrangements without requiring franchisor consent, but are subject to specific conditions and notifications.