Under what circumstances does the Schedule automatically terminate for The Standardx franchise?
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]6 ;
- 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 Schedules pertaining to the Central Hotel Services by Hyatt Master Agreement will automatically terminate under specific conditions. These conditions include the expiration or termination of the Franchise Agreement, provided that the Owner does not then enter into a franchise agreement, hotel management agreement, or hotel services agreement with Hyatt or its affiliates. This ensures the property continues to operate under a Hyatt brand or affiliation immediately following the initial termination. Additionally, the Schedule will automatically terminate if the Central Hotel Services by Hyatt Master Agreement itself expires or is terminated.
This automatic termination clause is designed to protect Hyatt's interests by ensuring continued affiliation and operation under the Hyatt brand. For a prospective The Standardx franchisee, this means that the various service schedules tied to the master agreement are contingent upon maintaining an active franchise agreement or an alternative agreement that keeps the property within the Hyatt network. If the franchisee's relationship with Hyatt is severed, these schedules will cease to be in effect.
It is important for potential franchisees to understand the implications of these termination clauses, as they directly affect the services and support provided by Hyatt. Franchisees should carefully review the terms of the Franchise Agreement and the Central Hotel Services by Hyatt Master Agreement to fully grasp the conditions under which these schedules can be terminated. This understanding is crucial for long-term planning and ensuring the continued operation of the property under the Hyatt brand.
Furthermore, franchisees should be aware that the termination of these schedules could impact the property's access to essential services and programs, potentially affecting its performance and profitability. Therefore, maintaining a strong and compliant relationship with Hyatt is essential to avoid any disruptions caused by the automatic termination of these schedules.