What specific warranties does the owner of The Standardx franchise provide to Hyatt?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Owner represents and warrants to Hyatt as follows:
- i. it has the full right, power, and authority to enter into this Agreement and that Owner's entering into this Agreement shall not result in a breach of or constitute a default under any agreement or instrument to which it is a party;
- ii. Owner shall comply with all applicable laws, enactments, orders and regulations in connection with the performance of its obligations hereunder; and
- iii. Owner shall comply with standards and measures required under the PCI DSS regarding the collection, storage, use, processing and transfer of Cardholder Data and maintain the confidentiality and security of that Cardholder Data.
- c. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THOSE CONCERNING MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND ACCURACY OR USE. WITHOUT PREJUDICE TO THE FOREGOING WARRANTIES OR ANY OF HYATT'S EXPRESS OBLIGATIONS UNDER THIS AGREEMENT, HYATT DOES NOT WARRANT OR GUARANTEE THAT THE HOSTED HARDWARE, PROPERTY MANAGEMENT SYSTEM, OR ANY OF THE SERVICES PROVIDED HEREUNDER WILL SATISFY OWNER'S REQUIREMENTS, OR THAT THE OPERATION OF SUCH WILL BE COMPLETELY UNINTERRUPTED OR COMPLETELY ERROR FREE.
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 franchise owner provides specific warranties to Hyatt. These include guaranteeing that the owner has the full right, power, and authority to enter into the Central Hotel Services by Hyatt Master Agreement, and that doing so will not breach any other agreements. The owner also warrants that they will comply with all applicable laws, enactments, orders, and regulations related to their obligations under the agreement.
Furthermore, the owner warrants compliance with the standards and measures required under the Payment Card Industry Data Security Standard (PCI DSS) regarding the collection, storage, use, processing, and transfer of cardholder data. This includes maintaining the confidentiality and security of that cardholder data. These warranties are crucial for Hyatt to ensure that franchisees operate legally and securely, especially concerning sensitive customer data.
It is important to note that these warranties are in lieu of all other warranties, express or implied, including those concerning merchantability, fitness for a particular purpose, and accuracy or use. This means that Hyatt is relying specifically on the listed warranties and disclaims any other guarantees not explicitly stated. Prospective franchisees should carefully consider these warranties and their implications for their operations and compliance responsibilities.