What is the relationship between the Franchise Agreement and the Hosting Services Agreement for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | (the "Effective Date"), by and between | | | (Name of Franchisee) | | | , a(n) ("Owner") and | | | Hyatt Franchising, L.L.C., a Delaware limited liability company ("Hyatt"). | | | Hyatt and Owner may be referred to | | | herein individually as a "Party" or together as the "Parties." | | | WHEREAS, Owner owns or will own the [BRAND] Hotel, which is or will be located at, | | | , (the "Property"), and the Property is operated pursuant to a franchise agreement | | | between Owner and Hyatt (as it may be amended, "Franchise Agreement"); | | | WHEREAS, Owner has entered into an agreement with Oracle America, Inc. ("Oracle") for the licensing of | | | a property management system (the "License Agreement"); and | | | WHEREAS, in conjunction with the Franchise Agreement, Hyatt shall provide hosting and related services | | | in support of the Property Management System to the extent set forth herein. | | follows: | NOW, THEREFORE, in consideration of the representations and promises of the parties set forth below, and | | | other good and valuable consideration the sufficiency of which is hereby acknowledged, the parties agree as | | 1. | Scope of Services. | | | a. | | | Services. This Agreement including Schedule 1 describes the Services that Hyatt shall provide to | | | Owner hereunder, which shall include hosting and making available the Property Management System for use by | | | Owner and its Authorized Users, and providing and maintaining the Hosted Hardware. The Services shall also | | | include providing upgrades and updates to: (A) the Third Party Software (to the extent provided by an applicable | | | third party vendor and authorized for use by Hyatt); and (B) the Hosted Hardware (to the extent provided by an | | | applicable third party vendor and authorized for use by Hyatt). Installation and configuration services will be subject | | | to a separate agreement. | | | b. | | | Restrictions. Owner may not: (i) knowingly propagate, or allow propagation of, any virus, worms, | | | Trojan horses or other programming routine intended to damage any system or data; or (ii) knowingly store or allow | | | for storage of defamatory, trade libelous, or otherwise unlawful data. In addition, Owner must comply with all other | | | restrictions listed in the License Agreement. | | | c. | | | Suspension. | | | Hyatt, without prejudice to its other rights at law or in equity, may suspend the | | | Services: (i) upon a violation of any restriction or obligation listed in Section 1(b); (ii) if any misuse of the Services or | | | misconduct with respect to the Services on the part of Owner or its employees, agents or end users creates, in Hyatt's | | | sole and reasonable judgment, an imminent risk of material damage to Hyatt's network, facilities or other property or | | | violation of any applicable laws or legal obligations; (iii) if Owner disrupts or causes harm to Hyatt's computers, | | | systems, infrastructure, or provision of the Services to other parties; or (iv) upon request of a government authority.
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, the Hosting Services Agreement is related to the Franchise Agreement in several ways. The Hosting Services Agreement is made between Hyatt Franchising, L.L.C. and the Owner, where the Owner owns or will own a The Standardx Hotel, which is operated under a Franchise Agreement between the Owner and Hyatt. The Hosting Services Agreement outlines that Hyatt will provide hosting and related services in support of the Property Management System in conjunction with the Franchise Agreement.
Furthermore, the data ownership and access rights for the data input into the Property Management System are determined as set forth in the Franchise Agreement. This indicates that the Franchise Agreement takes precedence in defining these rights. The indemnification obligations of both Hyatt and the Owner, as detailed in the Franchise Agreement, are incorporated by reference into the Hosting Services Agreement, meaning the terms of the Franchise Agreement directly apply to the Hosting Services Agreement in this regard.
Additionally, the Hosting Services Agreement includes limitations of liability and disclaimers, but these are subject to exceptions as outlined in the Franchise Agreement. This means that the Franchise Agreement can override certain limitations and disclaimers in the Hosting Services Agreement. The Franchise Agreement and the Hosting Services Agreement are critical components of the overall relationship between The Standardx (Hyatt) and the franchisee (Owner), with the Franchise Agreement establishing the foundational terms and conditions, and the Hosting Services Agreement providing specific details regarding the hosting services provided by Hyatt.