What is the required notice period for Hyatt to revoke a waiver granted to a The Standardx franchisee?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt and Franchisee may unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement only by a signed written instrument, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights Hyatt or Franchisee have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of ten (10) days' prior written notice.
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, Hyatt can revoke a waiver it has granted to a franchisee with ten days' prior written notice. This means that if Hyatt has previously waived or reduced an obligation or restriction for the franchisee, it can reinstate that obligation with only a short notice period.
This provision allows Hyatt to maintain flexibility and control over the franchise agreement. It ensures that waivers are not permanent and can be adjusted as needed. For a prospective franchisee, this implies that any waivers obtained should not be viewed as guaranteed long-term benefits, as Hyatt retains the right to revoke them.
It is important for franchisees to understand the conditions under which waivers are granted and the potential for them to be revoked. This clause highlights the importance of maintaining a strong relationship with Hyatt and adhering to the franchise agreement to minimize the risk of waivers being revoked.