What are the responsibilities of The Standardx franchisee regarding the construction of the Project?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
n accordance with the Franchise Agreement).
- (b) Provide Hyatt with certification from a qualified, professionally licensed independent structural engineer or firm, certifying that the Hotel building as designed and constructed meets or exceeds all applicable structural requirements, including without limitation seismic, wind, storm and flood, and all other applicable Legal Requirements.
- (c) Ensure that Franchisee's Consultants and contractors conduct a final work list and punch list survey of the Project and correct all defects prior to requesting final review and Approval of the Project by Hyatt. Upon correction of all defects and completion of all remaining work items identified on the punch list, Franchisee shall provide Hyatt with a copy of the punch list signed by the Consultants and contractors reflecting that such work has been completed to Hyatt's satisfaction, and shall request a final review of the Project by Hyatt.
3. PLANS, SPECIFICATIONS, AND DESIGNS
Any changes in or departures from the agreed plans, or such other items must be Approved by Hyatt, unless such changes are so minor as to have no impact on the quality, character and operation of the Hotel (and in the case of such minor changes, no Approval by Hyatt is necessary). Hyatt may withhold its consent to any and all departures from the Approved concepts, plans, layout specifications, drawings or designs, or such other items to be Approved by Hyatt, in its sole discretion, if Hyatt determines that such departure will cause the Hotel to fail to adhere to the Design and Construction Standards.
To the extent that any of the matters in this Section 3 involve compliance with the Design and Construction Standards, Franchisee shall cause its Consultants and contractors to implement the direction provided by Hyatt during the review process in order to ensure that the Project complies with the Design and Construction Standards.
Franchisee's contracts with all Consultants and contractors shall provide that all concepts, plans, specifications and designs, and any changes thereto or departures therefrom subsequently made, shall be submitted for Approval to Franchisee and Hyatt prior to implementation. Franchisee acknowledges that Hyatt's design and construction reviews shall not consist of a Peer Review, but rather are intended only to assist Franchisee and its Consultants in complying with their obligations. Such reviews do not relieve Franchisee or its Consultants of their responsibility to determine the completeness and coordination of their documents and to ensure that the design and construction of the Project comply with applicable Legal Requirements. Peer Review shall be conducted by third party professional consultants retained by Franchisee to review the Consultants' work.
Upon completion of the Project, Franchisee shall give Hyatt a written certificate or opinion from Franchisee's architect, licensed professional engineer, or recognized expert consultant stating that the Hotel conforms to all applicable Legal Requirements (including, without limitation, requirements governing public accommodations for persons with disabilities).
At Hyatt's request, Franchisee (i) must give Hyatt copies of all certificates of architects, contractors, engineers, and designers and such other similar verifications and information Hyatt reasonably requests and (ii) make available to Hyatt copies of all reports, studies, draw requests, schedules and other documents and materials of Franchisee, its contractors, suppliers and consultants relating to the design, construction and furnishing of the Hotel.
Hyatt shall have the right to visit the Site as often as reasonably necessary to ensure the Project is being developed, constructed and equipped in accordance with the Design and Construction Standards and in accordance with the Development Timetable. Hyatt will use reasonable efforts to provide Franchisee with twenty-four (24) hours' advance notice of any visits to be made to the Site by representatives of Hyatt or its affiliates in performance of services hereunder.
For the avoidance of doubt, the fees and expenses payable to all the Consultants (including, without limitation, the salary and expenses of the Project Manager and any FF&E Manager engaged by Franchisee in connection with the planning, building, furnishing, equipping and decorating of the Hotel, and any and all costs and expenses incurred by Hyatt's IT support services personnel), shall be paid directly by Franchisee independent of any fees paid by Franchisee under the Franchise Agreement.
4. SPARE PARTS
In addition to the FF&E to be included in the Project per the final plans and specifications for the Project, Franchisee shall, at Franchisee's sole cost and expense, cause the Project to include the spare parts set forth on Exhibit B attached hereto, which shall be a part of the Hotel upon the Opening Date. The quantities listed are the minimum acceptable. All quantities are to be rounded up to the next whole number.
Franchisee shall provide Hyatt with notification of any changes to the projected opening date of the Hotel (as set forth in the Franchise Agreement) as soon as Franchisee becomes aware of any such changes. In the event of a material delay of such projected opening date, Hyatt shall have the right to evaluate the Preliminary Area Program to ensure the Project's program continues to meet the Design and Construction Standards then in effect.
5. GENERAL TERMS
The use of Design and Construction Standards for the Project shall in no way give rise to any liability on the part of Hyatt or its affiliates for any defect or deficiency. Franchisee and its affiliates, consultants and other persons using the Design and Construction Standards must verify through their own means and consultants (architect, engineers, and other professionals), their compliance with any law and adequacy for the intended purpose. Hyatt and its affiliates make no
representation whatsoever in such regard. The quality of workmanship, and the adequacy and suitability of the plans, specifications, and design data for the Project are the sole responsibility of Franchisee.
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 franchisee is responsible for managing all aspects of the construction of the Project, either independently or through consultants and contractors. This includes ensuring that qualified third-party consultants test and commission fire, life safety, and MEP systems, providing written reports to both the franchisee and Hyatt certifying the systems' operational readiness. These reports must be received by Hyatt before the final review of the Project. The franchisee must also provide Hyatt with certification from a qualified, independent structural engineer or firm, confirming that the hotel building meets or exceeds all applicable structural requirements, including seismic, wind, storm, flood, and other legal requirements.
Prior to requesting the final review and approval of the Project by Hyatt, the franchisee must ensure that their consultants and contractors conduct a final work list and punch list survey to correct all defects. A copy of the punch list, signed by the consultants and contractors, must be provided to Hyatt, reflecting that all work has been completed to Hyatt's satisfaction. The franchisee is also responsible for ensuring that all consultants and contractors prepare full and adequate plans, layouts, specifications, drawings, and designs for the hotel, suitable for advertising and promotion. These contracts should require the consultants and contractors to provide adequate training to the hotel personnel on the use and maintenance of the building and its systems, as well as furnishing three full sets of "as-built drawings" and other relevant documents to both the franchisee and Hyatt upon project completion.
The franchisee is responsible for paying all fees and expenses for consultants, including the Project Manager and any FF&E Manager, independently of any fees paid under the Franchise Agreement. Additionally, the franchisee must include spare parts as specified in Exhibit B at their sole cost and expense. The franchisee must also notify Hyatt of any changes to the projected opening date of the hotel. The quality of workmanship, and the adequacy and suitability of the plans, specifications, and design data for the Project are the sole responsibility of Franchisee.
Any changes to the agreed plans must be approved by Hyatt, unless they are minor and have no impact on the hotel's quality, character, and operation. Hyatt may withhold consent if any departure from the approved plans would cause the hotel to fail to adhere to the Design and Construction Standards. The franchisee must ensure that their consultants and contractors implement Hyatt's directions during the review process to comply with these standards. Upon completion of the Project, the franchisee must provide Hyatt with a written certificate from their architect, licensed professional engineer, or recognized expert consultant, stating that the hotel conforms to all applicable Legal Requirements, including those governing public accommodations for persons with disabilities.