Under what conditions can Hyatt terminate The Standardx agreement due to a breach by the Owner?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Termination by Hyatt. Notwithstanding any minimum agreed term, Hyatt may, by written notice to Owner, terminate this Agreement: (i) upon any material breach by Owner which such material breach is not remedied within thirty (30) days of written notice to Owner setting out the nature of such breach and requiring its remedy; (ii) upon the termination of the License Agreement in accordance with its terms; or (iii) at any time for any reason or no reason upon thirty (30) days written notice to Owner.
- b. Termination by Owner. Owner may terminate this Agreement: (i) upon any material breach by Hyatt which such material breach is not remedied within thirty (30) days of written notice to Hyatt setting out the nature of such breach and requiring its remedy; or (ii) without cause upon six (6) months' notice to Hyatt.
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, Hyatt can terminate the agreement with an owner under specific conditions related to breaches of the agreement. Hyatt may terminate the agreement if the owner commits a material breach and fails to remedy it within 30 days of receiving written notice that specifies the nature of the breach and requires it to be fixed. This means that if an owner violates a significant term of the franchise agreement, they have a limited time frame to correct the issue before Hyatt can terminate the agreement.
Additionally, Hyatt can terminate the agreement if the License Agreement is terminated according to its own terms. Hyatt also retains the right to terminate the agreement at any time, for any reason or no reason, by providing the owner with 30 days' written notice. This clause gives Hyatt broad discretion in ending the franchise relationship, even without a specific breach by the owner, as long as they provide the required notice.
Conversely, the owner also has rights to terminate the agreement under certain conditions. The owner can terminate the agreement if Hyatt commits a material breach that is not remedied within 30 days of written notice. Furthermore, the owner can terminate the agreement without cause by giving Hyatt six months' notice. These provisions ensure that both parties have avenues for ending the agreement if the other party fails to meet their obligations or if they simply wish to discontinue the relationship, subject to the specified notice periods.