Under what conditions can Hyatt terminate The Standardx franchise agreement immediately without an opportunity to cure?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ppointment of a receiver, trustee, custodian, or other official for any portion of its property or the Hotel; takes any corporate or other action to authorize any of the actions set forth above in this Section 15.2(a); has any case, proceeding, or other action commenced against it as debtor seeking an order for relief, or seeking reorganization, arrangement, adjustment, liquidation, dissolution, or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization, or relief of debtors, or seeking appointment of a receiver, trustee, custodian, or other official for it or any portion of its property or the Hotel, and such case, proceeding, or other action results in an order for relief against it that is not fully stayed within seven (7) business days after being entered or remains un-dismissed for forty-five (45) days; has an attachment of Fifty Thousand
Dollars ($50,000) or more on all or any part of the Hotel or any of its assets that remains for at least ninety (90) days; or fails, within sixty (60) days after the entry of a final judgment against it in any amount exceeding One Hundred Thousand Dollars ($100,000), to discharge, vacate, or reverse the judgment, to stay its execution, or, if appealed, to discharge the judgment within thirty (30) days after a final adverse decision in the appeal;
- (b) Franchisee ceases operating the Hotel at the Site in affiliation with the Proprietary Marks, fails to identify the Hotel to the public as a Brand Hotel, or loses possession of or the right to possess all or a significant part of the Hotel, for any reason except as otherwise provided in this Agreement;
- (c) Franchisee or any of its Affiliates contests in any court or other Proceeding Hyatt's or its Affiliate's ownership of all or any portion of the Hotel System or the validity of any Proprietary Mark, Copyrighted Materials, or Confidential Information, or registers or attempts to register any Proprietary Mark or a derivative thereof;
- (d) Franchisee (or any of its Owners) makes a transfer in violation
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 franchise agreement immediately, without allowing an opportunity to cure, under specific financial and legal conditions. This action is effective upon delivering written notice to the franchisee.
The immediate termination can occur if the franchisee or any guarantor admits inability to pay debts, makes an assignment for the benefit of creditors, or faces actions to dissolve or liquidate. It also applies if they commence or consent to any case, proceeding, or action seeking reorganization, arrangement, adjustment, liquidation, dissolution, or composition of debts under bankruptcy, insolvency, reorganization, or relief of debtors laws. The same is true if a receiver, trustee, custodian, or other official is appointed for any portion of their property or the hotel.
Further, Hyatt can immediately terminate the agreement if a case, proceeding, or other action is commenced against the franchisee as a debtor seeking an order for relief, reorganization, liquidation, or appointment of a receiver, and such action results in an order for relief not stayed within seven business days or remains undismissed for 45 days. Finally, Hyatt can terminate immediately if there is an attachment of $50,000 or more on the hotel or its assets that remains for at least 90 days, or if the franchisee fails to discharge a final judgment exceeding $100,000 within 60 days, or within 30 days after a final adverse decision in an appeal.