Under The Standardx agreement, what is the relationship between the 'Property' and the Franchise Agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Owner owns a property known as [Insert Hotel Name] located at [Insert Owner Address] ("Property"), and the Property is operated pursuant to a franchise agreement with Hyatt or its affiliate (as it may be amended, "Franchise Agreement");
WHEREAS, Owner has requested that Hyatt provide certain Services, as defined below, to Owner in connection with the Property, pursuant to one or more of the following programs offered by Hyatt to Hyatt branded and affiliated hotels: the Field Marketing Program, the Central Sales Services Program, the Revenue Management Services Program, the Global Property Guest Services Program, the Digital Ancillary Services Program, or any similar program offered by Hyatt in the future (each individually, a "Program" and collectively, the "Programs"); and
WHEREAS, Hyatt has agreed to provide such Services according to the terms and under the conditions set forth herein and any Schedules attached hereto.
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 'Property' is the physical location of the hotel and its operation is governed by the Franchise Agreement. Specifically, the Central Hotel Services by Hyatt Master Agreement states that the Owner owns a property known as [Insert Hotel Name] located at [Insert Owner Address] ("Property"), and the Property is operated pursuant to a franchise agreement with Hyatt or its affiliate (as it may be amended, "Franchise Agreement")."
This means that the Franchise Agreement outlines the terms and conditions under which the The Standardx franchisee can operate the hotel at the specified property. The agreement defines the rights and responsibilities of both the franchisee and franchisor (Hyatt in this case) with respect to the operation of the hotel business at the Property.
Furthermore, the Central Hotel Services by Hyatt Master Agreement is made between the Owner and Hyatt, where the Owner has requested that Hyatt provide certain services in connection with the Property, pursuant to one or more programs offered by Hyatt to Hyatt branded and affiliated hotels. These programs include the Field Marketing Program, the Central Sales Services Program, the Revenue Management Services Program, the Global Property Guest Services Program, the Digital Ancillary Services Program, or any similar program offered by Hyatt in the future. Hyatt has agreed to provide such services according to the terms and under the conditions set forth in the agreement and any schedules attached to it.
In summary, the Franchise Agreement enables the franchisee to operate a The Standardx hotel at a specific location (the Property), while other agreements like the Central Hotel Services Master Agreement, define the services Hyatt provides to support the hotel's operation at that location. The Property is thus integral to the Franchise Agreement, as it is the physical site where the franchised business operates.