What is contemplated in The Standardx's acquisition regarding future management of properties?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
The acquisition includes management and hotel services agreements for operating hotels and the Bahia Principe trade name. In addition, the acquisition contemplates the future management of undeveloped Bahia Principe Hotels & Resorts-branded properties. Following the acquisition date, fee revenues and operating expenses of Bahia Principe were recognized on our condensed consolidated statements of income.
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the acquisition of Bahia Principe includes considerations for the future management of properties. Specifically, the acquisition contemplates the future management of undeveloped Bahia Principe Hotels & Resorts-branded properties.
Following the acquisition date, The Standardx recognized fee revenues and operating expenses of Bahia Principe on its condensed consolidated statements of income. This indicates that The Standardx intends to integrate the financial performance of Bahia Principe into its own financial reporting.
This arrangement suggests that The Standardx is planning to expand its portfolio by managing not only existing hotels but also overseeing the development and management of new properties under the Bahia Principe brand. For a potential franchisee, this could mean opportunities to be involved in managing or operating these future Bahia Principe Hotels & Resorts-branded properties, subject to the terms and conditions of any franchise agreement with The Standardx.