What rights does The Standardx Owner grant to Hyatt regarding feedback provided about the Services?

According to The Standardx's 2025 Franchise Disclosure Document, if an owner provides Hyatt with feedback regarding the services provided, the owner grants Hyatt specific rights. The owner gives Hyatt a perpetual, irrevocable, royalty-free, worldwide, sublicensable, and transferrable right and license to use, reproduce, disclose, distribute, modify, and otherwise exploit such feedback without any restrictions. This means Hyatt has broad authority to utilize the feedback in any manner they see fit, without needing further permission or compensation to the owner.

This clause is significant for prospective The Standardx franchisees because it essentially relinquishes control over any suggestions or ideas they might offer to improve Hyatt's services. While providing feedback might seem like a collaborative effort, the terms dictate that Hyatt can freely use the feedback for their benefit, potentially incorporating it into their systems or offerings without acknowledging the source or providing any financial return to the franchisee who provided the input.

Furthermore, the agreement specifies that this clause survives the termination or expiration of the agreement. Therefore, even after the franchise relationship ends, Hyatt retains the rights to use any feedback the owner provided during the term of the agreement. This is a standard practice to ensure that the franchisor can continue to improve its system based on franchisee input without legal constraints. Franchisees should be aware of this broad grant of rights and consider its implications before providing feedback, understanding that they will not retain any proprietary rights over their suggestions.