What material rights are associated with The Standardx's loyalty program for cardholders?

According to The Standardx's 2025 Franchise Disclosure Document, the loyalty program offers material rights to cardholders through co-branded credit card programs. These rights consist of loyalty points and free room nights, which can be redeemed for free or discounted services in the future. The Standardx has agreements with a third party to manage these co-branded credit card programs.

Specifically, The Standardx grants a license to use its name, arranges for the fulfillment of points issued to cardholders through the loyalty program, and awards cardholders with free room nights when they achieve certain milestones in the program. These points and free room nights are considered material rights because they provide tangible benefits to the cardholders, allowing them to access goods and services at no cost or at a reduced price.

For a prospective franchisee, understanding the specifics of these co-branded credit card programs and the associated loyalty benefits is crucial. It is important to know how these programs are administered, what costs are involved, and how they impact the overall revenue and customer loyalty for The Standardx properties. Franchisees should inquire about the terms of the agreements with the third-party credit card company, the criteria for earning points and free room nights, and any limitations or restrictions on their redemption. This knowledge will help franchisees effectively leverage the loyalty program to attract and retain customers, ultimately contributing to the success of their franchise.