What is the per-room liquidated damages amount in the event of condemnation for The Standardx franchise?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section | Subject | Applicable Term | |
|---|---|---|---|
| 10.1 | Per room liquidated damages – condemnation | Five Thousand Dollars ($5,000) |
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, in the event of condemnation, the per-room liquidated damages are $5,000. This means that if the hotel is taken by eminent domain, condemnation, or expropriation, The Standardx franchisee may be liable for this amount per room.
This liquidated damages fee is part of Article X, which discusses condemnation and damage. Specifically, section 10.1 addresses condemnation, stating that the franchisee must notify Hyatt (the franchisor) immediately if there is any proposed taking of all or a substantial portion of the hotel.
The $5,000 per room charge is listed in a table that references section 10.1. It is important to note that this amount is multiplied by the number of guest rooms in the new hotel if the franchisee or its affiliates begin construction on or operation of a hotel of the same Hotel Type within a specified area and time frame after termination.