What does The Standardx review regarding the Development Timetable and project budget prepared by the Franchisee for The Standardx project?

According to The Standardx's 2025 Franchise Disclosure Document, The Standardx, through Hyatt, reviews the Development Timetable and the franchisee's project budget for completeness and reasonableness. This review is part of Hyatt's broader oversight of the design and construction process for the hotel. Hyatt also attends design meetings and makes periodic observations to advise the franchisee and their consultants on complying with the Design and Construction Standards.

This process is intended to assist the franchisee in adhering to The Standardx's brand standards and operational requirements. However, the FDD clarifies that Hyatt's design and construction reviews are not 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.

For a prospective The Standardx franchisee, this means that while The Standardx provides guidance and feedback on the project's timeline and budget, the franchisee retains ultimate responsibility for the project's success and compliance with all applicable regulations. Franchisees should ensure they have competent consultants and contractors who understand the local legal requirements and can manage the project effectively. The franchisee should also engage third-party professional consultants to conduct Peer Reviews.