What is The Standardx's obligation upon termination of the Digital Ancillary Services Program Schedule?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
This Schedule may be terminated as follows:
- a. Either party may terminate this Schedule for any reason or no reason by notifying the other party in writing at least days ninety (90) days in advance. Notwithstanding the foregoing, in the event of termination by Owner pursuant to this subsection a. the effective date of such termination shall be no earlier than [Insert Date]3 ;
- b. This Schedule shall automatically terminate if (i) the Franchise Agreement expires or is terminated and Owner does not enter into a franchise agreement, hotel management agreement or hotel services agreement with Hyatt or its affiliate such that the Property continues to operate under a Hyatt brand or affiliation immediately following termination, or (ii) the Central Hotel Services by Hyatt Master Agreement expires or is terminated; and/or
- c. If either party commits a material breach of any provision of this Schedule and has failed to cure such breach within ten (10) days of receiving written notice, the other party may terminate this Schedule immediately upon written notice.
Upon termination of this Schedule, Owner shall remit to Hyatt payment for Services rendered through the effective date of termination.
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, upon termination of the Digital Ancillary Services Program Schedule, the franchisee (referred to as "Owner" in this context) is obligated to remit payment to Hyatt for services rendered up to the effective date of termination. This means that The Standardx franchisee must pay for any services they have received from Hyatt under the Digital Ancillary Services Program up to the point when the schedule is terminated.
The Digital Ancillary Services Program Schedule can be terminated under several circumstances. Either party can terminate the schedule for any reason with at least ninety days' written notice. However, if the franchisee terminates the schedule, the termination date cannot be earlier than a date specified in the agreement. The schedule also automatically terminates if the Franchise Agreement expires or is terminated, and the franchisee does not enter into a new agreement with Hyatt or its affiliate to continue operating under a Hyatt brand. Additionally, the schedule terminates if the Central Hotel Services by Hyatt Master Agreement expires or is terminated.
Another termination condition arises if either party materially breaches a provision of the schedule and fails to cure the breach within ten days of receiving written notice. In such cases, the other party can terminate the schedule immediately upon written notice. Furthermore, the franchisee has the option to rescind the schedule within thirty days of receiving a copy of it, provided they notify Way (Hyatt's designee) of their decision. If the franchisee rescinds the agreement within this timeframe, the schedule terminates immediately without further obligation from either party.
In summary, the franchisee's primary obligation upon termination of the Digital Ancillary Services Program Schedule is to pay for the services they have already received up to the termination date. The schedule outlines various conditions under which termination can occur, including termination by either party with sufficient notice, automatic termination due to the expiration or termination of related agreements, termination due to a material breach, and rescission by the franchisee within a specified timeframe.