What are the requirements for requesting an extension of the Opening Deadline for The Standardx, including any fees?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may request an extension of the Opening Deadline by submitting to Hyatt, at least three (3) months before the Opening Deadline, a written request for extension and an extension fee in the amount set forth in Exhibit B-1.
If Hyatt approves the extension, Hyatt will set a new Opening Deadline, the extension fee will be non-refundable, and Hyatt may (at its option) require Franchisee to modify any previously-approved plans, construction documents, or the PIP (as applicable), to comply with the then current design, equipment and other aspects of the Hotel System.
If Hyatt denies the extension, Hyatt will refund the extension fee.
Franchisee shall indemnify Hyatt for all costs and expenses that Hyatt incurs directly or indirectly as a result of Franchisee's failure to open the Hotel on or before the anticipated Opening Date specified by Franchisee or the Opening Deadline, whichever is earlier, including any amounts that Hyatt pays with respect to customers whose reservations at the Hotel are cancelled.
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, a franchisee may request an extension of the Opening Deadline. To do so, the franchisee must submit a written request to Hyatt at least three months before the original Opening Deadline. This request must also include an extension fee, the specific amount of which is detailed in Exhibit B-1 of the Franchise Agreement.
If Hyatt approves the extension request, they will establish a new Opening Deadline. The extension fee is non-refundable, regardless of the outcome. Hyatt also retains the option to require the franchisee to modify any previously approved plans, construction documents, or the Property Improvement Plan (PIP) to align with the current standards of The Standardx Hotel System.
However, if Hyatt denies the extension request, the extension fee will be refunded to the franchisee. It is important to note that franchisees are obligated to indemnify Hyatt for any costs or expenses Hyatt incurs due to the franchisee's failure to open the hotel by either the anticipated Opening Date specified by the franchisee or the Opening Deadline, whichever comes first. This includes any amounts Hyatt pays regarding cancelled customer reservations.