Regarding Non-Hotel Components within a Mixed-Use Site, what advertising and promotion restrictions apply to lessees and affiliates of The Standardx franchisees?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
You must and must cause your lessees and your affiliates and their respective lessees to: (a) develop, maintain and operate all Non-Hotel Components within the Mixed-Use Site (as defined in Item 16) in accordance with quality, design and operational standards consistent with the quality, design and operational standards applicable to the Hotel, (b) refrain from advertising, marketing or promoting the Non-Hotel Components as being associated with or part of the Hotel, the "The StandardX" brand or any other Proprietary Marks, except in connection with the Hotel, advertisement and promotion approved pursuant to Section 5 of the Franchise Agreement; and (c) operate the Non-Hotel Components in a way that, in our reasonable judgment, does not damage or reflect adversely on the goodwill associated with any Proprietary Mark.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–64)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees must ensure that their lessees, affiliates, and their respective lessees adhere to specific advertising and promotional restrictions for any Non-Hotel Components within a Mixed-Use Site.
The Standardx requires that all Non-Hotel Components are developed, maintained, and operated in accordance with quality, design, and operational standards consistent with those applicable to the hotel itself. This ensures a uniform standard across the entire mixed-use development.
Critically, these parties must not advertise, market, or promote the Non-Hotel Components as being associated with or part of The Standardx hotel brand or any of its proprietary marks. The only exception is if such advertising and promotion is explicitly approved in connection with the hotel's advertising and promotion, as outlined in Section 5 of the Franchise Agreement. Furthermore, the operation of the Non-Hotel Components must not, in The Standardx's reasonable judgment, damage or reflect negatively on the goodwill associated with any of The Standardx's proprietary marks. This protects the brand's reputation and image.