Is The Standardx required to participate in Non-Mandatory Services?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ystem Services Charges**
If you are in full compliance with your obligations under the Franchise Agreement, one or more members of the Hyatt Group will provide you those System Services we periodically specify. You must participate in all Mandatory Services and related programs, and may (at your option) participate in any or all Non-Mandatory Services and related programs, in the manner that we periodically specify. "System Services" means those services that the Hyatt Group generally and periodically makes available on a central, regional, or other shared or group basis (whether in whole or in part) to those Brand Hotels and other Hyatt Network Hotels that the Hyatt Group reasonably determines will be provided those services. We categorize System Services as either Mandatory Services or Non-Mandatory Services. "Mandatory Services" means those mandatory System Services that one or more members of the Hyatt Group provides to the Hotel and certain
other Brand Hotels and other Hyatt Network Hotels, and that the Hyatt Group reasonably determines must be acquired only from the Hyatt Group. "Non-Mandatory Services" means those non-mandatory System Services that one or more members of the Hyatt Group provides to the Hotel and certain other Brand Hotels and other Hyatt Network Hotels that the Hyatt Group reasonably determines will be offered to the Hotel and certain other Brand Hotels and other Hyatt Network Hotels on an optional basis.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees are not required to participate in Non-Mandatory Services. The FDD specifies that while franchisees must participate in all Mandatory Services, participation in Non-Mandatory Services is optional.
The Standardx defines "System Services" as services that the Hyatt Group makes available to Brand Hotels and other Hyatt Network Hotels on a central, regional, or other shared or group basis. These System Services are categorized as either Mandatory or Non-Mandatory. Mandatory Services are those that the Hyatt Group provides to the Hotel and certain other Brand Hotels and Hyatt Network Hotels, and that the Hyatt Group reasonably determines must be acquired only from the Hyatt Group. Non-Mandatory Services are those that the Hyatt Group provides to the Hotel and certain other Brand Hotels and Hyatt Network Hotels that the Hyatt Group reasonably determines will be offered to the Hotel and certain other Brand Hotels and Hyatt Network Hotels on an optional basis.
This distinction is important for prospective franchisees because it allows them to choose which additional services they want to utilize, potentially controlling costs. However, franchisees should carefully evaluate which Non-Mandatory Services could benefit their specific hotel's performance and market position. While these services are optional, they may provide a competitive advantage or improve operational efficiency.