Who is obligated to approve IT SOW for The Standardx hotels?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's contracts with all Consultants and contractors shall provide that all concepts, plans, specifications and designs, and any changes thereto or departures therefrom subsequently made, shall be submitted for Approval to Franchisee and Hyatt prior to implementation. Franchisee acknowledges that Hyatt's design and construction reviews shall not consist of a Peer Review, but rather are intended only to assist Franchisee and its Consultants in complying with their obligations. Such reviews do not relieve Franchisee or its Consultants of their responsibility to determine the completeness and coordination of their documents and to ensure that the design and construction of the Project comply with applicable Legal Requirements.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, The Standardx requires franchisees to submit concepts, plans, specifications, and designs for approval to both the franchisee and Hyatt before implementation. Specifically, franchisee contracts with consultants and contractors must include a provision mandating this submission process for any changes or departures made subsequently. Hyatt's review is intended to assist the franchisee and their consultants in adhering to their obligations, but it does not relieve the franchisee or their consultants of their responsibility to ensure the completeness, coordination, and compliance of the project with legal requirements.
This process ensures that the construction and design align with The Standardx's brand standards and legal requirements. However, the FDD clarifies that Hyatt's design and construction reviews are not peer reviews. Instead, they are intended to assist franchisees and their consultants in meeting their obligations. The franchisee retains the ultimate responsibility for ensuring the project's completeness, coordination, and compliance with all applicable legal requirements.
For a prospective The Standardx franchisee, this means that while Hyatt provides guidance and reviews, the franchisee is ultimately responsible for ensuring that all aspects of the hotel's construction and design, including IT systems, meet both The Standardx's standards and all legal requirements. Therefore, franchisees should engage qualified consultants and contractors and maintain thorough oversight of the project to ensure compliance and alignment with The Standardx's brand standards.