Does The Standardx require consent to operate a gambling 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 gambling business on any part of that site. This consent can 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 that includes the Hotel and other components like residential, retail, restaurant, commercial, or public spaces operating separately from the Hotel. These other components are referred to as Non-Hotel Components.
This requirement ensures that the operations of other businesses on the Mixed-Use Site do not negatively impact the The Standardx brand or the Hotel's operations. The Standardx retains control over the types of businesses operating on the site to protect its brand image and maintain a consistent environment for hotel guests. This is a fairly common practice in the hotel franchising industry, as franchisors seek to maintain brand standards and protect their reputation.
For a prospective The Standardx franchisee, this means that if they plan to develop a Mixed-Use Site that includes a gambling business, they must seek and obtain written consent from The Standardx. The franchisee should be aware that The Standardx has the right to refuse this consent without necessarily providing a reason. Therefore, it would be prudent for a potential franchisee to discuss any plans for such businesses with The Standardx early in the process to gauge the likelihood of obtaining consent and to avoid potential conflicts or wasted investment.