What must a Management Company sign as a condition of Hyatt's approval to manage 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.
- (c) Revocation of Management Company Approval.
If an approved Management Company or Franchisee (if Hyatt approves Franchisee to manage the Hotel) at any time becomes a Competing Brand Owner, fails to attend and successfully complete mandatory training program(s), fails to meet Hyatt's minimum qualifications (as Hyatt may periodically modify them), or fails to comply with this Agreement (including any System Standards and/or, without limiting the terms of Section 4.8 below, if the Hotel remains in any remedial or non-compliant status under Hyatt's then-current Quality Assurance and Compliance Program for three (3) or more consecutive months), the Management Company Documents, or any conditions of operator approval previously imposed by Hyatt, then, without limiting Hyatt's other rights and remedies under this Agreement and applicable law, Hyatt may (i) revoke its approval of the Management Company (or of Franchisee) as the manager of the Hotel or (ii) as a condition of its continued approval, Hyatt may impose on the Management Company (or Franchisee) additional requirements, including participation in remedial training and other operational programs, at the Management Company's or Franchisee's expense.
If Hyatt revokes its approval of the Management Company or of Franchisee as manager, then Franchisee must promptly terminate the Management Arrangement with that Management Company (if applicable) and either assume direct control of the Hotel's management and operation, if Hyatt approves Franchisee to manage the Hotel, or engage another Management Company that Hyatt has approved in writing.
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, if a franchisee chooses to have a management company manage The Standardx Hotel, that management company must first be approved by Hyatt. As a condition of this approval, the management company must sign the documents that Hyatt requires to protect its intellectual property rights. These documents also ensure the management company agrees to perform its management responsibilities and operate the hotel in compliance with the franchise agreement. These documents are referred to as the "Management Company Documents." The current version of these documents is attached as Exhibit F to the Franchise Disclosure Document.
In addition to signing the required documents, the management company must also have its personnel attend and successfully complete Hyatt's designated operator training programs for Brand Hotels, if any. Hyatt retains the right to refuse approval of a management company if that company is a Competing Brand Owner.
If Hyatt approves a management company, or if Hyatt approves the franchisee to manage the hotel themselves, this approval can be revoked if the management company or franchisee becomes a Competing Brand Owner, fails to attend and complete mandatory training programs, fails to meet Hyatt's minimum qualifications, or fails to comply with the franchise agreement, System Standards, the Management Company Documents, or any conditions of operator approval previously imposed by Hyatt. If approval is revoked, the franchisee must terminate the management arrangement and either assume direct control of the hotel's management (if approved by Hyatt) or engage another Hyatt-approved management company.