factual

If constructing a new Hotel, what standards must The Standardx franchisee follow?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

tter Party must sign a comfort letter or similar agreement that we reasonably specify. (Sections 2.1 and 2.7 of Franchise Agreement)

    1. Communicate our then current specifications and requirements for designing and developing a Brand Hotel, including the Design and Construction Standards. We will provide a briefing virtually, at our headquarters, or at another location we designate, to acquaint your managing owner or senior operations officer with our building process and support structure. If you are constructing a new Hotel at the site, you must design and construct the Hotel according to our Design and Construction Standards and Hotel System, and we and/or Hyatt Corporation will provide technical and design assistance related to the Hotel's development. If you are converting an existing hotel from another brand to the Hotel System, you must renovate the Hotel according to the PIP, which may reference some or all of our Design and Construction Standards and the Hotel System. The PIP is attached to the Franchise Agreement when we and you sign it. You may not

make any material changes to plans set forth in the PIP (including any changes to any structural or life safety equipment or systems, the number and/or type of guest rooms or common areas, or any architectural features), without our prior written consent, which we will not unreasonably withhold. We and our affiliates may operate, and authorize others to operate, Brand Hotels within or outside the United States providing additional, fewer and/or different amenities and services to guests than the Hotel provides, or that otherwise operate in a manner that is substantially different from the manner in which the Hotel operates. We may establish and periodically modify the Hotel System and System Standards for certain Brand Hotels in a manner that is different from the Hotel System and System Standards that apply to some or all Brand Hotels within or outside the United States. (Sections 2.1 2.6 and 2.8 and Exhibit B-3 of Franchise Agreement)

    1. As described in Item 8, identify the brands, types, makes and/or models of FF&E and other items (including both products and services) that meet our System Standards and, if we require, designated and approved suppliers of these items. We or our designated affiliate will directly provide and deliver, and in certain cases install, some items.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–64)

What This Means (2025 FDD)

According to The Standardx's 2025 Franchise Disclosure Document, franchisees constructing a new hotel must adhere to specific design and construction standards. The Standardx must approve the franchisee's initial design development documents and detailed plans, including working drawings and specifications, ensuring they comply with The Standardx's Design and Construction Standards, the Hotel System, and System Standards. Franchisees are required to submit these plans for approval and make any changes specified by The Standardx. Construction, remodeling, or development cannot commence until The Standardx approves the plans, and no changes to the approved plans are permitted without prior approval, especially concerning structural or life safety equipment, the number or type of guest rooms, common areas, or architectural features.

In addition to design and construction standards, The Standardx also requires approval of the franchisee's F&B Operations Plan and F&B Operator(s) to ensure they meet The Standardx's requirements. Furthermore, if the franchisee intends to establish a temporary or permanent sales office at the Hotel's site to solicit reservations before opening, this also requires The Standardx's approval. The franchisee must also prepare a pre-opening marketing program that meets The Standardx's requirements and contemplates spending at least $500 times the number of guest rooms, submitting it for approval at least 120 days before the Hotel's opening.

The Standardx also communicates its current specifications and requirements for designing and developing a Brand Hotel, including the Design and Construction Standards. The Standardx will provide a briefing to the franchisee's managing owner or senior operations officer to familiarize them with the building process and support structure. The franchisee must design and construct the Hotel according to The Standardx's Design and Construction Standards and Hotel System, with technical and design assistance provided by The Standardx and/or Hyatt Corporation. The franchisee must also obtain all required certificates of occupancy, licenses, and permits to operate the Hotel, and provide evidence of insurance coverage and payment of premiums. The Standardx will conduct a pre-opening inspection and approve the Hotel for opening under the Proprietary Marks if all conditions are met.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.