What direct costs are primarily included in The Standardx's other assets?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
y commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
- (3) Primarily includes direct costs associated with our co-branded credit card programs, the Unlimited Vacation Club paid membership program, and the Destination Residential Management business prior to sale recognized in other direct costs.
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company's other assets primarily include direct costs connected to several programs. These programs are the co-branded credit card programs, the Unlimited Vacation Club (UVC) paid membership program, and the Destination Residential Management business. These costs are recognized as other direct costs in The Standardx's financial statements.
Additionally, the 'owned and leased' category within other assets includes changes in the market performance of the underlying invested assets. These changes are reflected in net gains or losses. It also includes interest income from marketable securities held to fund rabbi trusts.
For a prospective franchisee, understanding the composition of these 'other assets' can provide insight into the various revenue streams and associated costs beyond the typical franchise operations. It also highlights the importance of understanding the performance of investment assets and their impact on the overall financial health of The Standardx.