Does Hyatt have the right to refuse any request from The Standardx franchisee?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
18.1 The Exercise of Hyatt's Judgment. Hyatt has the right from time to time to develop, operate, and change the Hotel System and System Standards in any manner not specifically prohibited by this Agreement. Whenever Hyatt has reserved in this Agreement a right to take or to withhold an action, or to grant or decline to grant Franchisee the right to take or omit an action, Hyatt may, except as otherwise specifically provided in this Agreement, make its decision or exercise its rights based on information readily available to it and its judgment of what is in the best interests of Hyatt and its Affiliates, the Brand Hotel network generally, or the Hotel System at the time its decision is made, without regard to whether Hyatt could have made other reasonable or even arguably preferable alternative decisions or whether its decision promotes Hyatt's (or its Affiliates') financial or other individual interest. Except where this Agreement expressly obligates Hyatt reasonably to approve or not unreasonably to withhold its approval of any of Franchisee's actions or requests, Hyatt has the absolute right to refuse any request Franchisee makes or to withhold its approval of any of Franchisee's proposed, initiated, or completed actions that require its approval. However, Hyatt may withhold its consent, whenever and wherever otherwise required, if Franchisee is in default under this Agreement.
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 generally has the right to refuse requests from The Standardx franchisee. Hyatt may make decisions based on its judgment of what is in the best interests of Hyatt, its affiliates, the Brand Hotel network, or the Hotel System. This discretion applies unless the franchise agreement expressly requires Hyatt to reasonably approve or not unreasonably withhold approval.
Hyatt's decisions can be based on readily available information, without needing to consider alternative decisions or whether the decision benefits Hyatt's individual interests. However, Hyatt may withhold consent if The Standardx franchisee is in default under the agreement.
This means that as a prospective The Standardx franchisee, you should be aware that Hyatt retains significant decision-making power and can deny requests unless the franchise agreement specifically limits this power. It is important to carefully review the franchise agreement to understand the specific instances where Hyatt's approval is required and whether there are any obligations for Hyatt to act reasonably in granting or withholding such approval.