How are the performance obligations satisfied over time by The Standardx classified?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
We satisfy the following performance obligations over time: access to Hyatt's symbolic IP, services provided under management and hotel services agreements, administration of the loyalty program, and the license of our brand name through our co-branded credit card agreements. Each of these performance obligations is considered a sales-based royalty or a series of distinct services, and although the activities to fulfill each of these promises may vary from day to day, the nature of each promise is the same and the customer benefits from the services every day.
For each performance obligation satisfied over time, we recognize revenues using an output method based on the value transferred to the customer. Revenues are recognized based on the transaction price and the observable outputs related to each performance obligation. We deem the following to represent our progress in satisfying these performance obligations:
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, several performance obligations are satisfied over time. These include providing access to The Standardx's symbolic intellectual property, services provided under management and hotel services agreements, administration of the loyalty program, and the license of their brand name through co-branded credit card agreements.
Each of these performance obligations is considered either a sales-based royalty or a series of distinct services. Although the specific activities involved in fulfilling these obligations may vary daily, the fundamental nature of each promise remains consistent, with customers benefiting from the services on a continuous basis.
For each of these performance obligations satisfied over time, The Standardx recognizes revenues using an output method based on the value transferred to the customer. This means that revenue recognition is tied to the observable outputs and the transaction price associated with each performance obligation, reflecting the progress in delivering value to the customer over the duration of the agreement.