What expenses are excluded from The Standardx's stock-based compensation expense?

According to The Standardx's 2025 Franchise Disclosure Document, the company's stock-based compensation expense excludes specific items related to certain employee groups. The expenses excluded are amounts related to employees of managed hotels and other employees whose payroll is reimbursed. These expenses are reimbursed by third-party owners. Additionally, insignificant amounts related to employees of owned and leased hotels are excluded, as these are recognized in owned and leased expenses on the condensed consolidated statements of income.

For a prospective The Standardx franchisee, this means that the stock-based compensation figures presented in the financial statements do not include the costs associated with employees at managed hotels whose payroll is reimbursed by third parties. This exclusion provides a clearer picture of The Standardx's direct compensation expenses for its core employees.

The exclusion of these expenses could be beneficial for franchisees as it may provide a more accurate representation of The Standardx's operational costs. However, it is important to understand the full scope of employee compensation and how it impacts the overall financial health of the company. Franchisees should consider this information in the context of the broader financial statements to assess the true cost structure of The Standardx.