Does The Standardx require consent to operate a pawnshop 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 pawnshop on any part of that mixed-use site. 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 residential, retail, restaurant, commercial, or public spaces operating separately from the Hotel on the same contiguous site.
This restriction is significant for prospective franchisees considering locations that are part of larger, mixed-use developments. It means that even if the pawnshop is a separate business from the hotel, its presence on the same site requires franchisor approval. The Standardx retains the right to deny this approval, giving them considerable control over the types of businesses operating near the hotel.
The FDD also specifies that similar restrictions apply to check-cashing businesses, gentlemen's clubs, pornography retailers, package liquor stores, marijuana dispensaries, and gambling businesses. Additionally, bars, lounges, clubs, or similar establishments situated within 300 feet of the hotel's interior footprint and deriving more than 50% of their revenue from alcohol sales also require The Standardx's consent. However, for these establishments, consent will not be withheld unless The Standardx reasonably determines that the establishment might have a material negative impact on guests of the Hotel.
This policy reflects The Standardx's concern for maintaining its brand image and ensuring a positive guest experience. Prospective franchisees should carefully consider these restrictions when evaluating potential locations and factor in the potential impact on revenue if consent is withheld for certain types of businesses.