What was the reported value of The Standardx's loyalty program as of December 31, 2023?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------------------------------------------------------------------------------------------|-------------------|-------------------| | Loyalty program (Note 10) | $ 642 | $ 807 | | Deferred compensation plans held in rabbi trusts (Note 10 and Note 13) | 548 | 489 | |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the reported value of the loyalty program as of December 31, 2023, was $807 million. This figure reflects the financial value The Standardx places on its customer loyalty program, which is funded through contributions from participating properties and third-party loyalty alliances. These funds are primarily used for member award redemptions and to cover operating expenses.
For a prospective franchisee, this indicates the scale and importance of the loyalty program to The Standardx's overall business model. A strong loyalty program can drive repeat business and customer engagement, potentially benefiting franchisees through increased revenue. The loyalty program invests in marketable securities, and from time to time, may loan excess funds to the company and receive market-rate interest in return.
It's important to note that the loyalty program's financial health is tied to the performance of its investments and the contributions from participating properties. Fluctuations in these areas could impact the program's value and its ability to fund member awards. Franchisees should inquire about the specific terms of their participation in the loyalty program, including any costs or obligations, and how the program's performance might affect their business.