What is a potential consequence for The Standardx franchisees if they choose not to use Avendra?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Avendra, LLC ("Avendra") is a products and services sourcing company that offers volume contracts to its customer hotels on a variety of FF&E and other items used in hotel operations, including food and beverage equipment and supplies (such as branded and commodity programs),
operating equipment and supplies (such as linens, pillows, terry, and light bulbs), and other products and services (such as printing and stationery, logoed items, chemicals, and pest elimination), at competitive prices that Avendra negotiates. You determine whether, and the extent to which, your Hotel will use Avendra's services. However, if you choose not to use Avendra, you might find it impracticable to purchase certain products for the Hotel (such as bathroom amenities made specifically for Hyatt Network Hotels) elsewhere.
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 have the option to use Avendra, LLC, a sourcing company that offers volume contracts on various items used in hotel operations. These items include food and beverage equipment, supplies, operating equipment, and other products and services. Avendra negotiates competitive prices for these items.
However, if a The Standardx franchisee chooses not to utilize Avendra's services, they might find it difficult to purchase certain products elsewhere. Specifically, the FDD mentions bathroom amenities made specifically for Hyatt Network Hotels as an example of a product that may be impracticable to source from alternative suppliers.
This restriction on sourcing implies that while using Avendra is not mandatory, it may be the most practical or only way to obtain certain branded or specialized products required to meet The Standardx's brand standards. This could impact the franchisee's ability to maintain consistency and quality in their hotel operations if they opt out of using Avendra.