If The Standardx revokes approval of the F&B Operator, what must the franchisee do?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
You must ensure that all F&B Operations operate in full compliance with all applicable laws, rules and regulations and all applicable System Standards. You must provide, or cause the
management company to provide, all brand standard training programs to the F&B Operator that we periodically specify. If the F&B Operator at any time fails to operate in full compliance with all applicable laws, rules and regulations and all applicable System Standards, or fails to comply with any agreement with us, then, without limiting our other rights and remedies under the Franchise Agreement and applicable law, we may revoke our approval of the F&B Operator. You then must promptly terminate your arrangement with the F&B Operator and either assume (if we approve you to manage the Hotel) or have your approved management company assume direct control of the Hotel's F&B Operations or engage another approved F&B Operator.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 71–74)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, if The Standardx revokes its approval of the franchisee's Food and Beverage (F&B) Operator, the franchisee must promptly terminate their arrangement with that F&B Operator.
Following the termination, the franchisee has two options. First, if The Standardx approves the franchisee to manage the hotel directly, the franchisee can assume direct control of the hotel's F&B operations. Second, the franchisee can have their approved management company assume direct control of the F&B operations, or engage another F&B Operator that The Standardx approves.
This requirement ensures that all F&B operations at The Standardx hotels adhere to applicable laws, rules, regulations, and System Standards. It also allows The Standardx to maintain brand consistency and quality across all franchise locations by ensuring that only approved and compliant operators manage the food and beverage services.