Under what conditions does the guarantee of performance for The Standardx franchise continue?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, HYATT HOTELS CORPORATION, a Delaware corporation located at 150 North Riverside Plaza, Chicago, Illinois 60606 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties and obligations of HYATT FRANCHISING, L.L.C., a Delaware limited liability company located at 150 North Riverside Plaza, Chicago, Illinois 60606 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the guarantee of performance provided by Hyatt Hotels Corporation continues until all obligations of Hyatt Franchising, L.L.C. under its franchise registrations and the Franchise Agreement are satisfied. Alternatively, the guarantee remains in effect until the liability of Hyatt Franchising, L.L.C. to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
This means that Hyatt Hotels Corporation, as the Guarantor, ensures that The Standardx will fulfill its duties and responsibilities to franchisees. This guarantee extends to both the initial franchise registration and the ongoing Franchise Agreement, including any amendments, modifications, or extensions made over time.
Importantly, the guarantee remains in place even if a franchisee has an outstanding claim against The Standardx. Hyatt Hotels Corporation does not waive its right to receive notice of default on the part of The Standardx, and the guarantee is binding on Hyatt Hotels Corporation and its successors and assigns. This provides a level of security for franchisees, knowing that a financially stable entity is backing The Standardx's obligations.