Under what circumstances can Hyatt withhold consent from a The Standardx franchisee's actions?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever Hyatt has reserved in this Agreement a right to take or to withhold an action, or to grant or decline to grant Franchisee the right to take or omit an action, Hyatt may, except as otherwise specifically provided in this Agreement, make its decision or exercise its rights based on information readily available to it and its judgment of what is in the best interests of Hyatt and its Affiliates, the Brand Hotel network generally, or the Hotel System at the time its decision is made, without regard to whether Hyatt could have made other reasonable or even arguably preferable alternative decisions or whether its decision promotes Hyatt's (or its Affiliates') financial or other individual interest. Except where this Agreement expressly obligates Hyatt reasonably to approve or not unreasonably to withhold its approval of any of Franchisee's actions or requests, Hyatt has the absolute right to refuse any request Franchisee makes or to withhold its approval of any of Franchisee's proposed, initiated, or completed actions that require its approval. However, Hyatt may withhold its consent, whenever and wherever otherwise required, if Franchisee is in default under this Agreement.
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, Hyatt, the franchisor, generally has broad discretion in approving or disapproving a franchisee's actions. Hyatt may make decisions based on readily available information and its judgment of what is in the best interests of Hyatt, its affiliates, the Brand Hotel network, or the Hotel System.
Hyatt retains the absolute right to refuse any request from a The Standardx franchisee or to withhold approval of any proposed, initiated, or completed actions that require its approval, unless the agreement expressly obligates Hyatt to reasonably approve or not unreasonably withhold its approval. However, Hyatt may withhold its consent if the franchisee is in default under the Franchise Agreement.
This means that as a The Standardx franchisee, you may face limitations on your operational decisions and will need to seek approval from Hyatt for various actions. Hyatt's decisions will be guided by their overall interests and the standards of the hotel system, and they are not necessarily obligated to prioritize your individual financial interests. It is important to understand the specific circumstances under which Hyatt's approval is required and the potential implications for your business. Furthermore, any default on the franchisee's part automatically allows Hyatt to withhold consent.