What was recognized on The Standardx's condensed consolidated statements of income following the Bahia Principe acquisition date?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Following the acquisition date, fee revenues and operating expenses of Bahia Principe were recognized on our condensed consolidated statements of income.
Our condensed consolidated balance sheets at both March 31, 2025 and December 31, 2024 reflect preliminary estimates of the fair value of the assets acquired, liabilities assumed, and the noncontrolling interest in the entity based on available information as of the acquisition date.
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, after acquiring Bahia Principe, the company recognized fee revenues and operating expenses from Bahia Principe on its condensed consolidated statements of income. This means that the income The Standardx earned from fees related to Bahia Principe, as well as the costs associated with operating Bahia Principe, were included in The Standardx's overall financial statements.
Specifically, the acquisition included management and hotel services agreements for operating hotels and the Bahia Principe trade name. It also considered the future management of undeveloped Bahia Principe Hotels & Resorts-branded properties. This indicates that The Standardx not only gained existing revenue streams but also anticipated future revenue from managing additional properties.
For a prospective franchisee, this information provides insight into how The Standardx incorporates acquisitions into its financial reporting and how these acquisitions contribute to the company's overall financial performance. Understanding the sources of revenue and expenses can help a franchisee assess the financial stability and growth potential of The Standardx.