Under what circumstances will the Digital Ancillary Services Program Schedule automatically terminate for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
This Schedule may be terminated as follows:
- a. Either party may terminate this Schedule for any reason or no reason by notifying the other party in writing at least days ninety (90) days in advance. [Notwithstanding the foregoing, in the event of termination by Owner pursuant to this subsection a. the effective date of such termination shall be no earlier than [Insert Date]7 ;
- b. This Schedule shall automatically terminate if (i) the Franchise Agreement expires or is terminated and Owner does not enter into a franchise agreement, hotel management agreement or hotel services agreement with Hyatt or its affiliate such that the Property continues to operate under a Hyatt brand or affiliation immediately following termination, or (ii) the Central Hotel Services by Hyatt Master Agreement expires or is terminated; and/or
- c. If either party commits a material breach of any provision of this Schedule and has failed to cure such breach within ten (10) days of receiving written notice, the other party may terminate this Schedule immediately upon written notice.
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 Digital Ancillary Services Program Schedule will automatically terminate under specific conditions. The schedule terminates automatically if the Franchise Agreement expires or is terminated, and the owner does not enter into a franchise agreement, hotel management agreement, or hotel services agreement with Hyatt or its affiliate. This ensures that the property continues to operate under a Hyatt brand or affiliation immediately following the termination of the initial agreement.
Additionally, the Digital Ancillary Services Program Schedule will automatically terminate if the Central Hotel Services by Hyatt Master Agreement expires or is terminated. This provision links the ancillary services program directly to the overarching master agreement, ensuring that the services are provided within the context of a broader relationship between the owner and Hyatt.
These automatic termination clauses protect Hyatt by ensuring that the Digital Ancillary Services are only provided to properties that maintain a formal relationship with Hyatt, either through a franchise agreement or another form of management or services agreement. For a prospective The Standardx franchisee, this means that the Digital Ancillary Services are contingent upon maintaining a valid and ongoing agreement with Hyatt. If the franchisee's relationship with Hyatt changes, the Digital Ancillary Services Program Schedule will be affected.