If a The Standardx hotel is damaged, what is the required action regarding notification?

According to The Standardx's 2025 Franchise Disclosure Document, if a hotel is damaged by fire, flood, accident, hurricane, or other casualty, the franchisee must notify The Standardx immediately.

This immediate notification is crucial for several reasons. It allows The Standardx to assess the extent of the damage and its potential impact on the brand's reputation and operations. It also enables The Standardx to provide support and guidance to the franchisee during the recovery process. The FDD specifies that the subsequent actions a franchisee must take depend on the cost to repair the damage relative to the hotel's market value and available insurance proceeds.

For a prospective The Standardx franchisee, this requirement highlights the importance of having a robust insurance policy in place to cover potential damages from various casualties. It also underscores the need for a clear communication plan to ensure prompt notification to The Standardx in the event of any damage to the hotel. Failing to notify The Standardx immediately could result in a breach of the franchise agreement and potential penalties.