Does The Standardx require consent to operate a gentlemen's club 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 hotel is part of a mixed-use site, the franchisee must obtain The Standardx's prior written consent to operate a gentlemen's club. This consent may be granted or withheld at The Standardx's sole discretion.
This restriction is in place to protect the brand's image and goodwill. The Standardx aims to ensure that non-hotel components within a mixed-use site do not negatively impact the hotel's reputation. This requirement applies to pawnshops, check-cashing businesses, pornography retailers, package liquor stores, marijuana dispensaries, and gambling businesses as well.
For a prospective franchisee, this means that if the planned The Standardx hotel is part of a mixed-use development, they must carefully consider the types of businesses operating nearby. Operating a gentlemen's club or similar business without prior written consent from The Standardx would be a breach of the franchise agreement. Franchisees should discuss any plans for mixed-use sites with The Standardx during due diligence to ensure compliance and avoid potential conflicts.