Who performs the annual audit of the 'World of Hyatt' program 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.
The Hyatt Group also has contractual arrangements with participating airlines under which Participating Hotel guests may choose to receive airline miles, in lieu of Loyalty Program points, as a result of their stay. The Participating Hotel must pay the actual cost of those miles that the airline charges to the Hyatt Group. Guests choosing airline miles for a stay at a Participating Hotel are not entitled to Loyalty Program points for that stay.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, an independent accounting firm conducts the annual audit of the 'World of Hyatt' loyalty program. The Hyatt Group manages the funds collected for the Loyalty Program, including revenue from point sales, by depositing them into segregated accounts and investing a portion in investment securities. These funds are specifically designated to cover the Loyalty Program's obligations, such as marketing, administrative costs, and award redemptions.
For a prospective franchisee, this means that the financial health and operation of the 'World of Hyatt' program are monitored by an external, independent firm. This arrangement provides a level of transparency and accountability regarding the program's finances. Franchisees can request copies of the audit reports to review the financial status and management of the loyalty program.
It is important to note that the Hyatt Group retains the right to modify the funding methods, assessment methodologies, and other attributes of the loyalty program. While an independent audit provides some assurance, franchisees should stay informed about any changes to the program that could affect their costs or benefits. Franchisees should also be aware that they bear the cost of airline miles if guests choose to receive them instead of Loyalty Program points.