Does The Standardx applicant represent and warrant that no Government Official is entitled to compensation or benefits in relation to the hotel's acquisition, development, construction, or operation?

According to The Standardx's 2025 Franchise Disclosure Document, the applicant, franchisee, and any partner, stockholder, member, officer, or director must represent and warrant that no Government Official is entitled to compensation or benefits related to the hotel's acquisition, development, construction, or operation. Any exceptions to this must be disclosed in an attachment submitted with the application. This requirement ensures compliance with anti-corruption laws and ethical business practices.

This representation and warranty is part of a broader set of requirements. The applicant must also warrant that they and their controlling shareholders have not been involved in an investigation by a court or government agency regarding a potential violation of any applicable law prohibiting fraud, bribery, or other corrupt activity, unless disclosed in an attachment. They must also confirm that they have complied with all applicable anti-corruption laws in connection with the hotel.

Furthermore, the applicant must have or will have an Anti-Corruption Policy, Code of Conduct, or similar corporate compliance program regarding compliance with applicable anti-corruption laws, including bribery of Government Officials, and/or the prevention of unlawful conduct. This demonstrates The Standardx's commitment to ethical and legal standards in its franchise operations. These measures are designed to protect The Standardx from legal and reputational risks associated with corruption and unethical behavior.