Is The Standardx required to provide free lodging to representatives during inspections, and under what conditions?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Our representatives may inspect or audit the Hotel at any time, with or without notice to you, to determine whether you and the Hotel are complying with the Hotel System, System Standards, and the terms of the Franchise Agreement, and you will give them free lodging (subject to availability) during the inspection period.
If we determine that the Hotel is not complying with the Hotel System, System Standards, or any other Franchise Agreement provisions, then you will pay or bear the cost of the Hotel's allocable share of all fees and other costs associated with the Quality Assurance and Compliance Program to correct the noncompliance.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees are required to provide free lodging to The Standardx representatives during inspections, subject to availability. This obligation arises when The Standardx representatives inspect or audit the hotel to ensure compliance with the Hotel System, System Standards, and the terms of the Franchise Agreement.
This requirement means that as a The Standardx franchisee, you must make accommodations available to The Standardx personnel without charge when they conduct on-site evaluations of your hotel. This is contingent on having available rooms at the time of the inspection. The purpose of these inspections is to verify that the hotel adheres to The Standardx's standards and the franchise agreement terms.
If the hotel is found to be non-compliant during these inspections, the franchisee will bear the costs associated with correcting the noncompliance. These costs are part of the Quality Assurance and Compliance Program and cover fees and other expenses necessary to bring the hotel back into compliance with The Standardx's standards. This could include follow-up inspections and audits until the issues are resolved.