What is the term length of The Standardx successor franchise agreement offered by Hyatt?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
When this Agreement expires, if Franchisee (and, as applicable, each Guarantor): (a) has substantially complied with this Agreement during its Term and is in full compliance with this Agreement (including all System Standards) as of the date upon which this Agreement expires; (b) then meets Hyatt's then applicable standards for franchisees and owners of franchisees of Brand Hotels; (c) has received passing Quality Assurance Scores (as defined in the System Standards) on all evaluations conducted during the preceding three (3)-year period; and (d) has the right to maintain possession of the Hotel for at least ten (10) years following this Agreement's expiration, then Hyatt will offer Franchisee the right to enter into a successor franchise agreement to continue operating the Hotel as a Brand Hotel for a term commencing immediately upon the expiration of this Agreement and expiring ten (10) years from that date (the "Successor Franchise Right") in accordance with this ARTICLE XIII.
If Franchisee (or any Guarantor) does not meet the requirements of this Section 13.1, then Hyatt need not enter into a successor franchise agreement with Franchisee, whether or not Hyatt notified Franchisee of the non-compliance or had, or chose to exercise, the right to terminate this Agreement during its Term.
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, if a franchisee meets certain requirements, Hyatt will offer the right to enter into a successor franchise agreement. This agreement allows the franchisee to continue operating the hotel as a Brand Hotel. The term of this successor franchise agreement commences immediately upon the expiration of the original agreement and extends for a period of ten years from that date. This is referred to as the Successor Franchise Right.
To be eligible for a successor franchise agreement, the franchisee must have substantially complied with the original agreement during its term and be in full compliance, including all System Standards, as of the expiration date. Additionally, the franchisee must meet Hyatt's then-applicable standards for franchisees and owners of Brand Hotels. The franchisee must also have received passing Quality Assurance Scores on all evaluations conducted during the preceding three-year period and have the right to maintain possession of the hotel for at least ten years following the original agreement's expiration.
It is important to note that if the franchisee or any guarantor does not meet these requirements, Hyatt is not obligated to enter into a successor franchise agreement. This applies regardless of whether Hyatt notified the franchisee of the non-compliance or had the right to terminate the original agreement during its term. This ensures that only franchisees who maintain high standards and compliance are offered the opportunity to continue operating under The Standardx brand.