What is the expiration date range for the performance guarantees acquired by The Standardx through acquisitions?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Through acquisitions, we acquired certain management and hotel services agreements with performance guarantees based on annual performance levels and with expiration dates between 2027 and 2045. Contract terms within certain of these management and hotel services agreements limit our exposure, and therefore, we are unable to reasonably estimate our maximum potential future payments.
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company acquired certain management and hotel services agreements that include performance guarantees. These guarantees are based on annual performance levels. The expiration dates for these performance guarantees range from 2027 to 2045.
It's important to note that the contract terms within some of these management and hotel services agreements may limit The Standardx's exposure. Because of these limitations, The Standardx states that it is unable to reasonably estimate the maximum potential future payments it might have to make under these guarantees.
For a prospective franchisee, this means that The Standardx has obligations to third-party owners based on the performance of their hotels. While the expiration dates are known, the potential financial impact to The Standardx is not fully quantifiable due to limitations within the agreements. This could potentially affect the financial stability of The Standardx, which could indirectly impact franchisees.