Under what conditions does tacit approval from The Standardx (Hyatt) NOT relieve the franchisee of their obligations?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt and Franchisee will not waive or impair any right, power, or option this Agreement reserves (including Hyatt's right to demand compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before the Term expires) because of any custom or practice that varies from this Agreement's terms; Hyatt's or Franchisee's failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any System Standard; Hyatt's waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Brand Hotels; the existence of franchise agreements for other Brand Hotels that contain provisions differing from those contained in this Agreement; or Hyatt's acceptance of any payments due from Franchisee after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to either party will be a waiver, compromise, settlement, or accord and satisfaction. The receiving party is authorized to remove any legend or endorsement, and it will have no effect.
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, the agreement between The Standardx and the franchisee is upheld regardless of any variations in custom, practice, or previous waivers. The Standardx retains all rights and options specified in the agreement, including demanding full compliance with all terms and conditions.
Specifically, The Standardx's failure to exercise any right or insist on compliance, even with System Standards, does not constitute a waiver. This means that even if The Standardx has not strictly enforced certain standards in the past, it can still demand full compliance in the future. Similarly, the existence of different provisions in other franchise agreements does not affect the franchisee's obligations under their specific agreement.
Furthermore, The Standardx's acceptance of payments from the franchisee after a breach of the agreement does not waive The Standardx's right to address that breach. This ensures that The Standardx can continue to accept payments while still pursuing remedies for any violations of the franchise agreement. Any special endorsements on checks will be disregarded, reinforcing that no side agreements or implied waivers can alter the original contract terms. This protects The Standardx's ability to enforce the agreement fully, regardless of past actions or differing arrangements with other franchisees.