What is the franchisee's obligation regarding insurance policy coverage for The Standardx Hotel?

According to The Standardx's 2025 Franchise Disclosure Document, franchisees must maintain adequate insurance policy coverage for The Standardx Hotel. The specific amounts of coverage are determined and periodically specified by The Standardx. Franchisees must ensure that their hotel strictly complies with all applicable laws and maintains the required insurance coverage.

This requirement means that prospective franchisees need to factor in the cost of adequate insurance coverage when assessing the financial viability of operating a The Standardx Hotel. The franchisor has the right to change the required coverage amounts periodically, which could impact operating costs. It is important for franchisees to stay informed about any changes to the insurance requirements to remain compliant with the franchise agreement.

Typically, franchisors mandate insurance coverage to protect the brand and the network from potential liabilities. The Standardx's approach aligns with this industry standard, ensuring that all hotels within the system have sufficient protection. Franchisees should discuss the typical range of insurance costs and coverage levels with The Standardx during their due diligence to better understand this ongoing expense.