How often is the 'World of Hyatt' program audited for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently, the Hyatt Group deposits all funds that it collects for the Loyalty Program (including sales of points and other related fees) into segregated accounts and invests a portion of the funds in various investment securities (primarily fixed income) that independent investment managers manage. These funds are designated to fund the Loyalty Program obligations, including all marketing and administrative costs, and current and future award redemptions. The Hyatt Group may periodically change the method of funding the Loyalty Program, the assessment methodology and other program attributes. An independent accounting firm audits the Loyalty Program on an annual basis and we will make copies of the audit reports available upon request. We may periodically change the assessment methodology and other program attributes in the future.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the 'World of Hyatt' program, which is the frequent guest loyalty program, undergoes an annual audit by an independent accounting firm. The Hyatt Group deposits all funds collected for the Loyalty Program into segregated accounts and invests a portion of the funds in various investment securities. These funds are designated to cover Loyalty Program obligations, including marketing, administrative costs, and award redemptions.
This annual audit provides a level of financial transparency and accountability for franchisees of The Standardx. It ensures that the funds collected for the loyalty program are being managed appropriately and used for their intended purposes. Franchisees can request copies of the audit reports to review the financial health and management of the 'World of Hyatt' program.
It's important to note that the Hyatt Group retains the right to periodically change the method of funding the Loyalty Program, the assessment methodology, and other program attributes. While the audit provides a snapshot of the program's financial status, franchisees should stay informed about any changes to the program that could impact their costs or benefits.