As a The Standardx franchisee, must I comply with the 'best rate guarantee'?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
You will establish the Hotel's room rates if those rates and your pricing policies comply with System Standards (to the maximum extent the law allows). You must comply with our "best rate guarantee" and related policies, as we periodically modify them. You may not charge any guest a rate higher than the rate that the reservations center specifies to the guest at the time the guest makes the reservation. You may not change the number of guest rooms in the Hotel without our consent.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 74–75)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, as a franchisee, you must comply with their "best rate guarantee" and related policies, as they periodically modify them. You are responsible for establishing the hotel's room rates, but these rates and your pricing policies must comply with The Standardx's System Standards to the maximum extent the law allows.
Furthermore, you are prohibited from charging any guest a rate higher than what the reservations center specifies at the time of booking. This ensures that customers receive the rate they were initially quoted. You also cannot change the number of guest rooms in the hotel without The Standardx's consent.
These stipulations are typical in the hotel franchising industry, as they help maintain brand consistency and customer satisfaction. By adhering to the best rate guarantee and System Standards, The Standardx aims to ensure that all franchisees offer competitive and consistent pricing, which can enhance the brand's reputation and customer loyalty.