What was the previously-used financial statement line item for 'Franchise and other fee revenues' for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| New financial statement line item | Previously-used financial statement line item |
|---|---|
| Owned and leased revenues | Owned and leased hotels revenues |
| Franchise and other fee revenues | Franchise, license, and other fee revenues |
| Revenues for reimbursed costs | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties |
| General and administrative expenses (1), (2) | Selling, general, and administrative expenses |
| Integration costs (2) | Selling, general, and administrative expenses |
| Owned and leased expenses | Owned and leased hotels expenses |
| Reimbursed costs | Costs incurred on behalf of managed and franchised properties |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the previously-used financial statement line item for 'Franchise and other fee revenues' was 'Franchise, license, and other fee revenues'. This indicates a change in how The Standardx categorizes and reports its revenue streams in its financial statements.
For a potential franchisee, this change in terminology might seem minor, but it reflects how The Standardx organizes its financial reporting. Understanding these changes can be helpful for franchisees when reviewing and comparing financial performance over different periods. It is important to note that while the name has changed, the underlying components of what constitutes franchise and other fee revenues may or may not have also changed.
Franchisees should pay attention to these reclassifications and revisions, as they can impact how the financial performance of The Standardx appears. If comparing historical financial data, ensure that you understand how the line items have been redefined to make accurate comparisons. It would be prudent for a prospective franchisee to discuss these changes with The Standardx to fully understand the implications and ensure clarity in financial reporting.