Does Hyatt's consent to a transfer by a Franchisee of The Standardx constitute a guarantee of the Hotel's success?

According to The Standardx's 2025 Franchise Disclosure Document, Hyatt's consent to a transfer of the franchise agreement does not constitute a guarantee of the hotel's success. Specifically, Hyatt's consent is not a representation of the fairness of the terms of any contract between the franchisee (or its owners) and the transferee, nor is it a waiver of any claims Hyatt has against the franchisee (or its owners). Furthermore, it does not waive Hyatt's right to demand the transferee's full compliance with the franchise agreement or any other agreement with the franchisee or the transferee.

This means that even though Hyatt approves a transfer, the new franchisee still bears the risk of the business's success. Hyatt's approval primarily ensures that the new franchisee meets their standards and is capable of operating The Standardx hotel, but it does not eliminate the inherent risks of owning and operating a hotel franchise.

For a prospective The Standardx franchisee, this highlights the importance of conducting thorough due diligence before acquiring a franchise. This includes carefully evaluating the financial terms of the transfer agreement, assessing the hotel's market conditions, and understanding all obligations under the franchise agreement. Relying solely on Hyatt's approval as an indicator of future success would be unwise.