How is the Pre-opening marketing fee calculated for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1 Pre-Opening Marketing. At least one hundred twenty (120) days before the Hotel's Opening Date, Franchisee must prepare and submit to Hyatt for its approval a written preopening marketing program that satisfies Hyatt's requirements and contemplates spending at least the amount set forth in Exhibit B-1. Franchisee must change the program as Hyatt specifies and implement the approved program.
- 5.2 Participation in Advertising and Marketing. Franchisee acknowledges that promoting Brand Hotels as a single chain in the United States is an important part of the Hotel System. Franchisee must participate in and use, in the manner that Hyatt specifies, all advertising,
marketing and promotional activities, materials and programs that Hyatt periodically requires for similarly-situated Brand Hotels (subject to Reasonable Deviations).
5.3 Approval of Marketing Programs and Materials. Subject to Hyatt's requirements and at Franchisee's expense, Franchisee may conduct local and regional marketing, advertising and promotional programs for the Hotel. Franchisee must ensure that all advertising, marketing and promotional materials, all public relations plans and programs, and all uses of the Proprietary Marks are conducted in a dignified manner and in accordance with the System Standards, including the use of Hyatt's standard templates where applicable, and which may, at Hyatt's option, require Hyatt's prior approval of materials not previously approved by Hyatt in the manner Hyatt specifies. Franchisee must discontinue using any materials, including previouslyapproved materials, and cease engaging in any plans and programs, including previously-approved plans and programs, within the timeframe Hyatt specifies after Franchisee receives written notice from Hyatt. Franchisee may not use Guest Information in conducting marketing, advertising and promotional programs for the Hotel unless conducted by or through Hyatt or with Hyatt's supervision in each instance. Franchisee shall pay Hyatt the reasonable fees that Hyatt periodically establishes for optional marketing, advertising and promotional materials and programs that Franchisee chooses to acquire from Hyatt or its Affiliates or in which Franchisee chooses to participate.
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, franchisees are required to engage in pre-opening marketing activities. Specifically, at least 120 days before the hotel's opening date, the franchisee must create and submit a written pre-opening marketing program to Hyatt for approval. This program needs to meet Hyatt's requirements and involve spending at least the amount specified in Exhibit B-1. The franchisee is obligated to modify the program as directed by Hyatt and then implement the approved version. This ensures that The Standardx brand is properly introduced to the local market before the hotel begins operations.
The FDD emphasizes that promoting Brand Hotels, including The Standardx, as a unified chain across the United States is crucial. Franchisees are therefore mandated to participate in and utilize all advertising, marketing, and promotional activities, materials, and programs that Hyatt periodically requires for hotels of similar type. This participation is subject to reasonable deviations, suggesting some flexibility based on the specific location and market conditions of the hotel. This requirement ensures brand consistency and leverages the collective marketing efforts of the entire The Standardx system.
While franchisees can conduct their own local and regional marketing programs, these are subject to Hyatt's requirements and must be at the franchisee's expense. All marketing materials and public relations plans must be dignified and adhere to System Standards, including using Hyatt's standard templates where applicable. Hyatt retains the option to require prior approval of any materials not previously approved. Franchisees must also discontinue using any materials or cease engaging in any plans if they receive written notice from Hyatt. Furthermore, franchisees are restricted from using Guest Information for marketing purposes unless it is conducted by or through Hyatt's supervision. Franchisees will also be required to pay reasonable fees for optional marketing materials and programs they choose to acquire from Hyatt or its affiliates. This multi-layered approval process ensures that all marketing efforts align with The Standardx brand standards and protect guest data.