Does The Standardx require consent to operate a marijuana dispensary 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 marijuana dispensary. This consent may be granted or withheld at The Standardx's sole discretion. This requirement is in place to ensure that the operations of any non-hotel components within the mixed-use site do not negatively impact the hotel's brand image or guest experience.
This restriction is outlined in Item 16 of the FDD, which details the restrictions on what a franchisee may sell. The clause specifically addresses mixed-use sites, defining them as locations where the hotel shares a contiguous site with other establishments like residential spaces, retail stores, restaurants, or commercial spaces. The Standardx aims to control the types of businesses operating alongside its hotels to maintain brand consistency and protect its reputation.
For a prospective franchisee, this means that if the planned hotel location is part of a mixed-use development, they must disclose any intention to operate or allow the operation of a marijuana dispensary on the site. Securing written consent from The Standardx is a prerequisite, and there is no guarantee that such consent will be granted. This condition introduces a degree of uncertainty and dependence on The Standardx's approval for franchisees considering mixed-use locations with diverse business activities.
This requirement is not uncommon in the franchise industry, particularly in hospitality, where brand image and guest experience are paramount. Franchisors often impose restrictions on franchisees to maintain standards and protect the overall brand. Prospective franchisees should carefully consider these restrictions and discuss any potential mixed-use plans with The Standardx during their due diligence process.