If The Standardx revokes approval of the management company, what must the franchisee do?

According to The Standardx's 2025 Franchise Disclosure Document, if The Standardx revokes its approval of the franchisee's management company, the franchisee must take immediate action. Specifically, the franchisee is required to promptly terminate the existing Management Arrangement with the disapproved company.

Following the termination of the arrangement, the franchisee has two options. First, if The Standardx approves the franchisee to directly manage the hotel, the franchisee can assume direct control of the hotel's management and operation. Second, if the franchisee is not approved to manage the hotel directly, they must engage another management company that The Standardx approves. This ensures that the hotel continues to be managed by an entity that meets The Standardx's standards and requirements.

This requirement is in place to maintain brand consistency and quality across all The Standardx locations. By mandating the use of approved management, The Standardx aims to ensure that each hotel adheres to its operational standards and protects its brand reputation. For a prospective franchisee, this means being prepared to act swiftly to replace a management company if The Standardx revokes its approval, either by taking on management responsibilities themselves (if approved) or by finding another approved management company.