Does The Standardx require consent to operate a pornography retailer 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 prior written consent from The Standardx to operate a pornography retailer or other sexually-oriented 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 spaces like residential, retail, restaurant, commercial, or public areas operating separately from the hotel on the same contiguous site. These separate areas are referred to as Non-Hotel Components. This restriction is in place to protect the brand's image and goodwill.
The Standardx also requires franchisees to ensure that their lessees and affiliates adhere to these restrictions. This means the franchisee is responsible for ensuring that no pornography retailers or similar businesses operate on the Mixed-Use Site without prior written consent from The Standardx. The Standardx retains the right to review agreements between the franchisee or its affiliates and the operators of the Non-Hotel Components to ensure compliance with these restrictions.
This requirement is not uncommon in the franchise industry, particularly in the hospitality sector, where brand image and customer experience are critical. The Standardx aims to maintain a consistent and family-friendly environment across all its locations, and restricting certain types of businesses on the Mixed-Use Site helps achieve this goal. Prospective franchisees should carefully consider these restrictions and ensure they are comfortable with The Standardx's control over the types of businesses that can operate on the Mixed-Use Site. It is important to discuss any potential conflicts or concerns with The Standardx before signing the franchise agreement.