If the Base Index is no longer published, what may The Standardx designate for calculating changes?

According to The Standardx's 2025 Franchise Disclosure Document, if the Base Index, which is the Consumer Price Index for All Urban Consumers for All Items published by the U.S. Department of Labor, Bureau of Labor Statistics, is no longer available, The Standardx has the right to designate another reasonably comparable index. This substitute index would be used for calculating changes in the cost of living or purchasing power for consumers.

This provision is important for franchisees because the Guarantor Monetary Threshold increases annually based on the CPI Increase. The CPI Increase is calculated using the Base Index. If the original Base Index is discontinued, The Standardx can choose a replacement index to continue adjusting the Guarantor Monetary Threshold. This ensures that the threshold keeps pace with economic changes, protecting The Standardx's interests.

For a prospective franchisee, this means that the financial requirements for the guarantor of the franchise agreement can change over time, even if the original index is no longer published. It is crucial to understand how these adjustments are calculated and what alternative indices The Standardx might consider using. Franchisees should discuss with The Standardx what specific criteria would be used to select a replacement index to ensure it remains fair and predictable.