Where will The Standardx list the initial Guarantor Monetary Threshold?

According to The Standardx's 2025 Franchise Disclosure Document, the initial Guarantor Monetary Threshold will be listed in Exhibit B-1 to the Franchise Agreement. This threshold represents the minimum financial requirements that at least one guarantor must satisfy throughout the term of the Franchise Agreement.

The Guarantor Monetary Threshold is determined by The Standardx based on factors such as the hotel's size, the market in which it operates, and The Standardx's assessment of risk. It includes two components: a minimum net worth (total assets less total liabilities, excluding hotel-related assets and liabilities) and a minimum amount of liquid assets (cash, cash equivalents, and marketable securities).

It's important to note that the Guarantor Monetary Threshold will automatically increase each year, based on the CPI Increase, which is tied to the Consumer Price Index. Franchisees and their guarantors are also required to provide annual financial statements or other documents to The Standardx to demonstrate ongoing compliance with the Guarantor Monetary Threshold. This ensures that the financial stability of the guarantor remains sufficient to cover the obligations under the Franchise Agreement.