What brand does the joint venture, in which The Standardx has a 50% share, own?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Bahia Principe—During the year ended December 31, 2024, we entered into a shareholders' agreement with an unrelated third-party and acquired 50% of the outstanding shares of Management Hotelero Piñero, S.L. The joint venture, which is a VIE, owns the Bahia Principe brand and manages Bahia Principe Hotels & Resorts-branded properties (see Note 7). Through our variable interest, we have the power to direct the activities that most significantly affect the economic performance of the VIE and have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and therefore, we are the primary beneficiary. We consolidate the operating results and financial position of this VIE in our consolidated financial statements within our management and franchising segment.
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the joint venture in which The Standardx holds a 50% share owns the Bahia Principe brand. Specifically, The Standardx entered into a shareholders' agreement and acquired 50% of the outstanding shares of Management Hotelero Piñero, S.L., forming a joint venture. This joint venture owns the Bahia Principe brand and manages Bahia Principe Hotels & Resorts-branded properties.
This arrangement allows The Standardx to expand its portfolio by offering all-inclusive travel experiences under the Bahia Principe brand. The Standardx consolidates the operating results and financial position of this variable interest entity (VIE) in its consolidated financial statements within its management and franchising segment, indicating a significant level of control and benefit from the joint venture's activities.
For a prospective franchisee, this indicates that The Standardx is involved in managing and franchising other hotel brands in addition to its own. This may provide additional revenue streams and growth opportunities for The Standardx, potentially benefiting franchisees through a stronger overall network and brand recognition. However, it also means that The Standardx's resources and attention are divided among multiple brands, which could impact the support and focus given to The Standardx franchises.