Under what conditions can a Franchisee of The Standardx manage the Hotel themselves?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ut Hyatt's approval of Franchisee as the Hotel's operator. Hyatt will not unreasonably withhold its approval if the Management Company or Franchisee (as applicable) meets Hyatt's minimum qualifications, including Hyatt's then current operator approval fee, and ensures that its personnel attend and satisfactorily complete required brand standard training programs.
- (b) Management Company Documents. As a condition of Hyatt's approval of any Management Company, the Management Company must (i) sign the documents Hyatt requires to protect its intellectual property rights and to reflect the Management Company's agreement to perform its management responsibilities and otherwise operate the Hotel in compliance with this Agreement (collectively, the "Management Company Documents"); and (ii) attend and successfully complete Hyatt's designated then current operator training programs for Brand Hotels, if any. The current version of the
Management Company Documents is attached as Exhibit F. Hyatt may refuse to approve a Management Company that is a Competing Brand Owner. If Hyatt has approved a Management Company as of the Effective Date, or if Hyatt has approved Franchisee to manage the Hotel as of the Effective Date, then the approved Management Company (if applicable) is listed on Exhibit B-1.
- (c) Revocation of Management Company Approval. If an approved Management Company or Franchisee (if Hyatt approves Franchisee to manage the Hotel) at any time becomes a Competing Brand Owner, fails to attend and successfully complete mandatory training program(s), fails to meet Hyatt's minimum qualifications (as Hyatt may periodically modify them), or fails to comply with this Agreement (including any System Standards and/or, without limiting the terms of Section 4.8 below, if the Hotel remains in any remedial or non-compliant status under Hyatt's then-current Quality Assurance and Compliance Program for three (3) or more consecutive months), the Management Company Documents, or any conditions of operator approval previously imposed by Hyatt, then, without limiting Hyatt's other rights and remedies under this Agreement and applicable law, Hyatt may (i) revoke its approval of the Management Company (or of Franchisee) as the manager of the Hotel or (ii) as a condition of its continued approval, Hyatt may impose on the Management Company (or Franchisee) additional requirements, including participation in remedial training and other operational programs, at the Management Company's or Franchisee's expense. If Hyatt revokes its approval of the Management Company or of Franchisee as manager, then Franchisee must promptly terminate the Management Arrangement with that Management Company (if applicable) and either assume direct control of the Hotel's management and operation, if Hyatt approves Franchisee to manage the Hotel, or engage another Management Company that Hyatt has approved in writing.
- (d) Core Management Staffing. Franchisee, the Management Company or the approved F&B Operator (as applicable) is solely responsible for hiring the Core Management and other Hotel personnel and determining the terms and conditions of their employment.
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, a franchisee can manage the hotel themselves if Hyatt approves them to do so. Hyatt must provide written approval for the franchisee to act as the hotel's operator. To obtain this approval, the franchisee must meet Hyatt's minimum qualifications, including paying Hyatt's current operator approval fee, and ensure their personnel attend and satisfactorily complete required brand standard training programs.
If a franchisee initially uses a management company and Hyatt later revokes its approval of that management company, the franchisee can assume direct control of the hotel's management and operation, provided Hyatt approves the franchisee to manage the hotel at that time. This situation might arise if the management company becomes a Competing Brand Owner, fails to meet Hyatt's minimum qualifications, or fails to comply with the Franchise Agreement, System Standards, or any conditions of operator approval previously imposed by Hyatt.
It is important to note that Hyatt retains the right to establish and modify System Standards for the hotel, but the franchisee retains control and responsibility for the hotel's day-to-day management and operation, including implementing and maintaining these System Standards. This means that while The Standardx provides the framework and standards, the franchisee is ultimately responsible for the hotel's daily functioning, provided they have the necessary approval from Hyatt.