What must a Management Company do as a condition of Hyatt's approval to manage a The Standardx Hotel?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Management Company Documents. As a condition of Hyatt's approval of any Management Company, the Management Company must (i) sign the documents Hyatt requires to protect its intellectual property rights and to reflect the Management Company's agreement to perform its management responsibilities and otherwise operate the Hotel in compliance with this Agreement (collectively, the "Management Company Documents"); and (ii) attend and successfully complete Hyatt's designated then current operator training programs for Brand Hotels, if any. The current version of the
Management Company Documents is attached as Exhibit F. Hyatt may refuse to approve a Management Company that is a Competing Brand Owner. If Hyatt has approved a Management Company as of the Effective Date, or if Hyatt has approved Franchisee to manage the Hotel as of the Effective Date, then the approved Management Company (if applicable) is listed on Exhibit B-1.
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, a Management Company must fulfill specific requirements to gain Hyatt's approval to manage a The Standardx Hotel. The Management Company is required to sign the Management Company Documents, which protect Hyatt's intellectual property rights and ensure the Management Company agrees to perform its management duties and operate the hotel in compliance with the Franchise Agreement. Additionally, the Management Company must ensure its personnel attend and successfully complete Hyatt's designated operator training programs for Brand Hotels.
Hyatt may refuse to approve a Management Company that is a Competing Brand Owner. The Management Company must also acknowledge and ratify the terms and conditions of the Franchise Agreement, agreeing to be bound by the terms, conditions, and restrictions regarding the management and operation of the Hotel as set forth in the Franchise Agreement. This includes adhering to specific articles within the agreement, such as those related to operational standards and responsibilities.
The Management Company is not obligated to cover the Franchisee's financial obligations to Hyatt or any third party, including Royalty Fees, System Services Charges, or liquidated damages. Furthermore, the Management Company is not bound by provisions in ARTICLE XII of the Franchise Agreement. The Management Company also represents and warrants to Hyatt and the Franchisee that it is not a Competing Brand Owner.
Hyatt retains the right to enforce the terms and conditions of the Franchise Agreement directly against the Management Company. The Franchisee acknowledges that any action or omission by the Management Company related to the Hotel will be considered the act or omission of the Franchisee for the purposes of Hyatt's rights and remedies under the Franchise Agreement. This comprehensive framework ensures that the Management Company operates the The Standardx Hotel in accordance with Hyatt's standards and protects Hyatt's interests.