What agreement must each Comfort Letter Party sign for The Standardx?

According to The Standardx's 2025 Franchise Disclosure Document, before a franchisee begins operating a hotel, each Comfort Letter Party must sign a comfort letter or similar agreement that The Standardx reasonably specifies. This requirement is part of the process The Standardx undertakes to approve a site for a new hotel.

This agreement is significant because it indicates that third parties involved in the financing or development of the hotel property may need to enter into an agreement with The Standardx. The specifics of this comfort letter or similar agreement are not detailed in this excerpt, but it generally functions to provide assurance to The Standardx that certain obligations related to the franchise will be met, even if the franchisee defaults.

Prospective franchisees should inquire about the specific terms and conditions included in the comfort letter or similar agreement to fully understand the obligations and liabilities of all parties involved. This is especially important if the franchisee relies on external financing or partnerships to establish the The Standardx franchise.