What are the requirements for The Standardx regarding electronic payments?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Electronic Payments. You must make all payments for Royalty Fees, System Services Charges and other amounts due to us or any member of the Hyatt Group under the Franchise Agreement or relating to the Hotel by electronic funds transfer ("EFT") in compliance with System Standards. We periodically may change the procedure for payments. You must make funds available in your account to cover payments when due. You may not change your bank, financial institution, or account used in the operation of the Hotel without first telling us.
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 required to make all payments for Royalty Fees, System Services Charges, and any other amounts owed to The Standardx or any member of the Hyatt Group via electronic funds transfer (EFT). These payments must comply with System Standards, which The Standardx may periodically change.
Franchisees must ensure that sufficient funds are available in their account to cover these payments when they are due. Furthermore, franchisees are prohibited from changing the bank, financial institution, or account used for the Hotel's operation without first notifying The Standardx.
This requirement ensures that The Standardx receives payments promptly and efficiently. It also allows The Standardx to maintain control over the payment process and to track payments accurately. For a prospective franchisee, this means setting up an EFT system that meets The Standardx's standards and maintaining open communication with The Standardx regarding any changes to their banking information.