What is the Quality Assurance and Compliance Program for The Standardx hotels?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ance, and Guest Satisfaction. The Hotel must participate in quality assurance, compliance and guest satisfaction programs that we periodically develop and modify (collectively, the "Quality Assurance and Compliance Program"). You must pay your allocable share of all fees and other costs associated with the Quality Assurance and Compliance Program. Our representatives may inspect or audit the Hotel at any time, with or without notice to you, to determine whether you and the Hotel are complying with the Hotel System, System Standards, and the terms of the Franchise Agreement, and you will give them free lodging (subject to availability) during the inspection period. If we determine that the Hotel is not complying with the Hotel System, System Standards, or any other Franchise Agreement provisions, then you will pay or bear the cost of the Hotel's allocable share of all fees and other costs associated with the Quality Assurance and Compliance Program to correct the noncompliance. This includes (a) reimbursing our costs related to your non-compliance, such as travel and living expenses, guest satisfaction payments or expenses, and other costs for administering any necessary actions, follow-up inspections, audits or re-evaluation visits until you have fully corrected the non-compliance, (b) paying for meetings and additional brand standards training programs that we specify and require your personnel to attend relating to your non-compliance, and (c) paying program fees which we and/or our affiliates may use to promote guest satisfaction initiatives for Hyatt Network Hotels. These amounts will vary depending on the extent of your non-compliance and may increase if our costs increase. Currently, we impose the following fees for each 6-month FIP stage if the Hotel is placed in or remains in FIP protocols as a result of QA scores below requirements: (i) Stage 1 - $5,000 administrative fee; (ii) Stage 2 - $15,000 administrative fee; and (iii) Stage 3 - $20,000 administrative fee. In addition, if the Hotel does not achieve passing scores necessary to exit the FIP protocols by the end of Stage 3, the Hotel is placed in our BPP program, which requires the Hotel to pay an administrative fee of $45,000 per year. We may, as we deem appropriate, reduce or refund FIP fees based on improved performance and/or your accelerated compliance with hotel renovation requirements. Under the FIP and BPP policies currently in place, Brand Hotels are eligible for up to a 100% reduction of the applicable FIP or BPP fee, based on improvement in performance. We may introduce additional compliance programs in the future. Any fees associated with such programs will fall within the same ranges as the
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees must participate in the Quality Assurance and Compliance Program, which The Standardx may periodically develop and modify. Franchisees are responsible for their share of the fees and costs associated with this program. Representatives from The Standardx have the right to inspect or audit the hotel at any time, with or without prior notice, to ensure compliance with the Hotel System, System Standards, and the Franchise Agreement. During these inspections, franchisees must provide free lodging to the representatives, subject to availability.
If The Standardx determines that a hotel is not in compliance, the franchisee will be responsible for covering their share of all fees and costs related to the Quality Assurance and Compliance Program to rectify the noncompliance. This may include reimbursing The Standardx for costs related to the non-compliance, such as travel and living expenses, guest satisfaction payments, and the costs of administering necessary actions, follow-up inspections, audits, or re-evaluation visits until the non-compliance is fully corrected. Franchisees may also be required to pay for meetings and additional brand standards training programs for their personnel related to the non-compliance, as well as program fees used to promote guest satisfaction initiatives for Hyatt Network Hotels.
The fees associated with non-compliance can vary depending on the extent of the issue and may increase if The Standardx's costs increase. Currently, if a hotel is placed in or remains in the Franchise Improvement Program (FIP) due to QA scores falling below requirements, the fees for each six-month FIP stage are: $5,000 for Stage 1, $15,000 for Stage 2, and $20,000 for Stage 3. If the hotel does not achieve passing scores by the end of Stage 3, it will be placed in the Brand Performance Program (BPP), which requires an administrative fee of $45,000 per year. However, Brand Hotels are eligible for up to a 100% reduction of the applicable FIP or BPP fee based on improved performance and/or accelerated compliance with hotel renovation requirements. The Standardx may introduce additional compliance programs in the future, with fees falling within the same ranges as the FIP and BPP fees.