What is the maximum duration of a suspension of a The Standardx franchisee's access to the CRS or other System Services?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
If Hyatt exercises its right to suspend Franchisee's access to the CRS or other System Services, such suspension will last no more than six (6) months, after which time Hyatt shall either reinstate Franchisee's access or terminate this Agreement.
Hyatt's exercise of this right will not constitute an actual or constructive termination of this Agreement nor be Hyatt's sole and exclusive remedy for Franchisee's default or failure to comply with this Agreement.
If Hyatt exercises its right not to terminate this Agreement but to implement any remedies in this Section 15.3, Hyatt may at any time after the appropriate cure period under the written notice has lapsed (if any) terminate this Agreement without giving Franchisee any additional corrective or cure period.
During any suspension period, Franchisee must continue to pay all fees and other amounts due under, and otherwise comply with, this Agreement and all related agreements.
Hyatt's exercise of its rights under this Section 15.3 will not be a waiver by Hyatt of any breach of this Agreement.
If Hyatt rescinds any suspension of Franchisee's rights, Franchisee will not be entitled to any compensation for any fees, expenses or losses Franchisee might have incurred due to Hyatt's exercise of any suspension right provided in this Section 15.3.
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 The Standardx (referred to as Hyatt in the document) suspends a franchisee's access to the CRS (Central Reservation System) or other System Services, the suspension will not exceed six months. After this six-month period, The Standardx is obligated to either reinstate the franchisee's access to these services or terminate the franchise agreement.
This suspension of services does not constitute a termination of the agreement, nor is it the sole remedy available to The Standardx for a franchisee's default or failure to comply with the agreement. The Standardx retains the right to implement other remedies outlined in Section 15.3 of the agreement. Furthermore, The Standardx can terminate the agreement at any time after the cure period for the default has passed, without providing any additional corrective period.
During any suspension period, the franchisee is still obligated to fulfill all financial obligations, including the payment of fees and other amounts due under the agreement. They must also continue to comply with all other terms and conditions of the franchise agreement and any related agreements. If The Standardx rescinds the suspension, the franchisee is not entitled to compensation for any losses or expenses incurred as a result of the suspension.