Does The Standardx have co-branded credit card agreements with a third party?

According to The Standardx's 2025 Franchise Disclosure Document, The Standardx has co-branded credit card agreements with a third party. Under the terms of these agreements, The Standardx has several performance obligations, including granting a license to The Standardx name, arranging for the fulfillment of points issued to cardholders through the loyalty program, and awarding cardholders with free room nights upon achievement of certain program milestones. The loyalty points and free room nights represent material rights that can be redeemed for free or discounted services in the future.

For each performance obligation satisfied over time, The Standardx recognizes revenues using an output method based on the value transferred to the customer. Revenues are recognized based on the transaction price and the observable outputs related to each performance obligation. The cardholder spend for the license to The Standardx name through co-branded credit card programs is indicative of the value the partner derives from the use of the brand name.

The revenues allocated to loyalty program points and free night awards are deferred and recognized in revenues for reimbursed costs upon redemption or expiration of a card member's promotional awards, net of redemption expense when The Standardx is the agent. The Standardx is responsible for arranging for the redemption of promotional awards, but it does not directly fulfill the award night obligation except at owned and leased hotels. Therefore, The Standardx is the agent for managed and franchised hotels, and it is the principal with respect to owned and leased hotels.

For a prospective franchisee, this indicates that The Standardx leverages its brand through credit card partnerships to enhance customer loyalty and generate revenue. The franchisee may benefit from increased brand recognition and customer engagement through these programs. However, the financial performance and specific terms of these agreements are not detailed, so further inquiry may be needed to understand the full impact on franchise operations.