Who benefits from The Standardx's debt repayment guarantees?

According to The Standardx's 2025 Franchise Disclosure Document, the debt repayment guarantees are put in place to aid third-party owners, franchisees, and unconsolidated hospitality ventures in securing financing from third-party lenders or to negotiate more favorable borrowing conditions. Therefore, the direct beneficiaries of these guarantees are the third-party owners, franchisees, and unconsolidated hospitality ventures.

These guarantees can be crucial for franchisees who might not otherwise qualify for loans or would face less favorable terms. By The Standardx providing these guarantees, franchisees can access capital needed to establish or expand their businesses. This support can be a significant advantage, especially for new franchisees or those in challenging economic environments.

However, it's important to note that while these guarantees benefit franchisees, The Standardx also aims to protect its own interests. The document mentions that The Standardx has agreements to recover amounts funded under the debt repayment guarantee from these partners, potentially through cash or HTM debt security. Additionally, The Standardx may have the ability to assume control of the property if certain funding thresholds are met or specific events occur. This indicates that The Standardx is not only supporting its franchisees but also mitigating its own financial risks associated with these guarantees.