What is the definition of 'hospitality ventures' in relation to 'The Standardx'?

According to The Standardx's 2025 Franchise Disclosure Document, 'hospitality ventures' are defined as entities in which The Standardx owns less than a 100% equity interest. This definition is important for prospective franchisees to understand because The Standardx may have investments in other hospitality-related businesses that are not wholly owned by them.

This definition helps clarify the scope of The Standardx's involvement in various business entities. It indicates that The Standardx participates in ventures where its ownership stake is partial, suggesting shared control, risk, and profit potential with other partners. This is a common arrangement in the hospitality industry, allowing companies to expand their reach and diversify their investments without bearing the full financial burden alone.

For a potential The Standardx franchisee, understanding this definition is crucial for assessing the financial statements and understanding the relationships The Standardx has with other entities. It also highlights the importance of due diligence to understand the performance and stability of these 'hospitality ventures,' as they could potentially impact The Standardx's overall financial health and, by extension, the franchise system.