Is participation in Mandatory Services optional or required for The Standardx franchisees?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Mandatory Services and Non Mandatory Services comprise the System Services. If you are in full compliance with your obligations under the Franchise Agreement, we or one or more members of the Hyatt Group will provide you those System Services that we periodically specify. You must participate in all Mandatory Services and related programs, and may (at your option) participate in any or all Non-Mandatory Services and related programs, in the manner that we periodically specify. You must acquire all Mandatory Services (as we periodically modify them) only from a member of the Hyatt Group. We may periodically add to, delete from, and otherwise modify these System Services, and the scope of and manner of providing System Services, upon notice to you. Also, due to the differences in products, services, markets and hospitality experiences among Brand Hotels and other Hyatt Network Hotels, we may, where we deem appropriate in our judgment: (a) classify certain System Services as Mandatory Services for the Hotel which we classify as Non-Mandatory Services or do not offer to other Brand Hotels and/or other Hyatt Network Hotels; (b) not provide to the Hotel certain System Services that we provide to other Brand Hotels and/or other Hyatt Network Hotels; and (c) limit the scope of those System Services provided to franchised Brand Hotels, such as by limiting the access that franchised Brand Hotels have to certain customer and other proprietary information for Hyatt Network Hotels other than the Hotel. We describe the current System Services and the current charges for those System Services in Item 6, including all of the services offered pursuant to the Central Services Agreement, which are generally Non-Mandatory Services but in certain circumstances may be designated as Mandatory Services as a condition of our approval of the Hotel's management company, as consideration for other items negotiated as part of the Franchise Agreement, or as part of the requirements of the Quality Assurance and Compliance Program.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees are required to participate in all Mandatory Services. The FDD specifies that Mandatory Services and Non-Mandatory Services comprise the System Services. The Standardx or a member of the Hyatt Group will provide these System Services if the franchisee is in full compliance with the Franchise Agreement. Franchisees must participate in all Mandatory Services and related programs as specified by The Standardx, but participation in Non-Mandatory Services and related programs is optional.
The Standardx can modify these System Services, including adding to, deleting from, or otherwise changing them, with notice to the franchisee. The scope and manner of providing System Services can also be modified. Due to differences in products, services, markets, and hospitality experiences among Brand Hotels and other Hyatt Network Hotels, The Standardx may classify certain System Services as Mandatory for one hotel while classifying them as Non-Mandatory for others, or not offer them at all to some hotels. They may also limit the scope of System Services provided to franchised Brand Hotels.
The current System Services and their charges are described in Item 6 of the FDD, including services offered under the Central Services Agreement, which are generally Non-Mandatory but can be designated as Mandatory under certain circumstances. These circumstances include as a condition of approval of the Hotel's management company, as consideration for other items negotiated as part of the Franchise Agreement, or as part of the requirements of the Quality Assurance and Compliance Program. This means that while some services are optional, The Standardx retains the right to make them mandatory based on specific conditions or agreements.