Who is responsible for arranging the redemption of promotional awards in The Standardx's co-branded credit card program?

According to The Standardx's 2025 Franchise Disclosure Document, The Standardx is responsible for arranging the redemption of promotional awards for its co-branded credit card program. However, The Standardx does not directly fulfill the award night obligation except at owned and leased hotels.

This means that for managed and franchised hotels, The Standardx acts as an agent in arranging the redemption of promotional awards. For owned and leased hotels, The Standardx acts as the principal and directly fulfills the award night obligation. This distinction is important for franchisees to understand, as it clarifies The Standardx's role in fulfilling award obligations at different types of properties.

The FDD also mentions that the loyalty program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. The costs of administering the loyalty program are charged to the properties through an assessment fee based on members' qualified expenditures. Upon redemption of points at managed and franchised properties, The Standardx recognizes the previously deferred revenue in revenues for reimbursed costs on its consolidated statements of income, net of redemption expense paid to managed and franchised hotels.