Does The Standardx require consent to operate a check-cashing business on a mixed-use site?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Hotel is or will be part of a site (whether newly constructed or adapted) that is owned or developed by you, your owner, or your affiliate ("Mixed-Use Site"), which may include, in addition to the Hotel, any residential, retail, restaurant, commercial or public space that is located on the same single, contiguous site as the Hotel but which operates separate from the Hotel ("Non-Hotel Components"), no part or portion of the Mixed-Use Site may be used to operate: (i) a pawnshop, check-cashing business, gentlemen's club, pornography retailer, or other sexuallyoriented business, or (ii) a package liquor store, marijuana dispensary, or gambling business, without our prior written consent, which consent may be granted or withheld in our sole judgment, or (iii) a bar, lounge, club or similar establishment situated within 300 feet of any part of the Hotel's interior footprint, whose revenues are derived more than 50% from the sale of alcoholic beverages, without our prior written consent, which consent will not be withheld unless we reasonably determine that the establishment might have a material negative impact on guests of the Hotel.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 74–75)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, if a The Standardx Hotel is part of a Mixed-Use Site, the franchisee must obtain The Standardx's prior written consent to operate a check-cashing business. This consent may be granted or withheld at The Standardx's sole discretion. A Mixed-Use Site is defined as a site owned or developed by the franchisee, their owner, or affiliate, which includes the Hotel and other separate spaces like residential, retail, restaurant, commercial, or public areas.
This requirement means that a prospective The Standardx franchisee cannot unilaterally decide to operate or allow a check-cashing business within a Mixed-Use Site. They must first seek and receive written approval from The Standardx. The Standardx has the right to deny this request without necessarily providing a reason, which gives The Standardx significant control over the types of businesses operating near its hotels.
This restriction is in place to protect The Standardx's brand image and ensure that the businesses operating within the Mixed-Use Site are compatible with the hotel's standards and reputation. The Standardx aims to maintain a certain level of quality and customer experience, and certain types of businesses, like check-cashing services, may not align with this objective.
For a potential franchisee, this means carefully considering the types of businesses they intend to have on the Mixed-Use Site and discussing these plans with The Standardx during the franchise application process. Understanding The Standardx's preferences and restrictions is crucial to avoid potential conflicts and ensure compliance with the Franchise Agreement.