What are the obligations of The Standardx regarding the approval of suppliers, considering the restrictions on sources of products and services in Item 8 and the potential for litigation as described in Item 3?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to obtain any FF&E, supplies, or other goods and services from a source that we have not previously approved as meeting our System Standards (for those items that require supplier approval), you must send us a written request with any information and samples we consider necessary to determine whether the product, service and source meet our then current criteria. If you comply with our processes and procedures, we will respond to your request within a reasonable time period (typically 30 days) after receiving all information we request. We may charge you our costs to review your request and evaluate the product, service and/or source. We may condition our approval on standards and requirements relating to quality, quantity, warranties, prices, volume capability, frequency of delivery, distribution methods and locations, standards of service (including prompt attention to complaints), consistency, reliability, financial capability, labor and customer relations, the willingness and ability to comply with our vendor compliance guide and other criteria. We may modify our System Standards in this area as we deem best. We may, at our option, revoke our approval of certain goods, services or sources if they fail to continue
to meet our System Standards. We may designate a particular source for, or model or brand of, FF&E, supplies or other goods or services that we (in our sole judgment) determine to be critical to the Hotel System.
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees are obligated to adhere to The Standardx's System Standards, which govern the types, models, and brands of products and services used in the hotel. These standards also dictate the required and authorized products and services that the hotel must offer to customers, along with quality standards for food and beverage operations. The Standardx designates and approves suppliers for these products and services, which may include The Standardx itself or its affiliates.
If a franchisee wishes to source FF&E (furniture, fixtures, and equipment), supplies, or other goods and services from a supplier not already approved by The Standardx, they must submit a written request. This request must include all information and samples deemed necessary by The Standardx to assess whether the product, service, and source meet the current System Standards. The Standardx will typically respond within 30 days after receiving all requested information. However, The Standardx may charge the franchisee for the costs incurred in reviewing the request and evaluating the product, service, or source.
The Standardx may condition its approval on various factors, including quality, quantity, warranties, prices, volume capability, delivery frequency, distribution methods and locations, service standards, consistency, reliability, financial capability, labor and customer relations, and compliance with The Standardx's vendor compliance guide. The Standardx retains the right to modify these System Standards and may revoke approval of goods, services, or sources that no longer meet the standards. The Standardx may also designate specific sources, models, or brands for items deemed critical to the Hotel System.