Under what conditions can a The Standardx franchisee represent that the Hotel was a Brand Hotel after termination?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and its Affiliates may not, without Hyatt's permission, represent to Hotel customers, prospective customers or the public that the Hotel is or was a Brand Hotel, or otherwise hold itself out to the public as a former franchisee of Hyatt's or as the former operator of a Brand Hotel, except in the limited case of informing investors, prospective investors, or lenders that Franchisee has general experience in operating a Brand Hotel.
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, after the franchise agreement terminates or expires, a franchisee and its affiliates are generally prohibited from representing to customers, prospective customers, or the public that the hotel is or was a The Standardx hotel. This includes any actions that might suggest a former affiliation with The Standardx.
However, there is a specific exception: The Standardx franchisee can inform investors, prospective investors, or lenders that the franchisee has general experience in operating a The Standardx hotel. This exception is limited to communications with these specific parties for the purpose of demonstrating the franchisee's experience in the hotel industry.
The Standardx requires the franchisee to maintain a conspicuous sign at the registration desk stating that the hotel is no longer associated with The Standardx. The franchisee must also complete all de-identification obligations to The Standardx's satisfaction within fifteen days after the agreement terminates or expires. Failure to comply with these de-identification provisions results in a royalty fee of $5,000 per day until de-identification is completed, and The Standardx's representatives are permitted to enter the hotel to complete the process at the franchisee's expense.