Under what condition must The Standardx franchisees acquire revenue management services from Hyatt?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
You may, and if we require (depending on your or your approved management company's experience) you must, acquire revenue management services from us. You also may, but are not required to, use Rosemont's purchasing and project management services and acquire our pre-opening advisory assistance for your Hotel. If you are constructing a new Brand Hotel, you may decide to engage us (or our affiliate) to provide technical services and assistance relating to the Hotel's development.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees may be required to acquire revenue management services from The Standardx (Hyatt). The condition for this requirement depends on the franchisee's or their approved management company's experience. If The Standardx requires it, based on the franchisee's or their management company's experience, then the franchisee must acquire these services from them.
This stipulation allows The Standardx to ensure that franchisees, particularly those new to the hotel industry or lacking sufficient expertise, have access to professional revenue management. Revenue management is crucial for optimizing pricing and maximizing revenue, and The Standardx seems to want to maintain a certain level of control over this aspect of the business, especially when the franchisee's experience is limited.
However, the FDD also states that franchisees may choose to use Rosemont's purchasing and project management services and acquire pre-opening advisory assistance for their Hotel. Furthermore, if constructing a new Brand Hotel, franchisees may decide to engage The Standardx (or its affiliate) to provide technical services and assistance relating to the Hotel's development. This indicates that The Standardx offers a range of optional support services, allowing franchisees to tailor their level of assistance based on their needs and preferences.