Must my room rates and pricing policies comply with The Standardx System Standards?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
confirmed reservations that the CRS, GDS or ADS refers to the Hotel. The CRS and approved GDS and ADS are the only reservation systems or services that the Hotel may use for reservations. Franchisee will establish the Hotel's room rates, provided that those rates and Franchisee's pricing policies comply with System Standards (to the maximum extent the law allows). Franchisee may not charge any guest a rate higher than the rate that the reservations center specifies to the guest when the guest makes the reservation.
- 4.6 F&B Operations and Spa Operations.
Franchisee is responsible for ensuring that all F&B Operations and all Spa Operations (if the Hotel has Spa Operations) operate in full compliance with all applicable laws, rules and regulations and all applicable System Standards.
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, franchisees must establish the hotel's room rates and pricing policies in compliance with the System Standards, to the maximum extent the law allows. Franchisees must also comply with The Standardx's "best rate guarantee" and related policies, as they may be modified from time to time. Moreover, franchisees cannot charge a guest a higher rate than what the reservations center specifies when the guest makes the reservation.
These stipulations mean that while franchisees have some control over setting room rates, The Standardx maintains significant oversight to ensure brand consistency and competitiveness. The "best rate guarantee" likely requires franchisees to match or beat rates offered by competitors or other channels, potentially impacting profitability. Franchisees need to stay informed about any modifications to The Standardx's policies to avoid non-compliance.
The Standardx also has the right to establish and periodically modify System Standards for the Hotel and modify the Hotel System as The Standardx deems best. Franchisee must at all times ensure that the Hotel is operated in compliance with the Hotel System and all other mandatory System Standards The Standardx periodically communicates to Franchisee, as The Standardx may periodically modify them. System Standards may regulate any aspect of the Hotel's operation and the products and services that the Hotel uses and offers to guests and other customers, including participation in and compliance with the terms of all of The Standardx's mandatory marketing, reservation service, rate and room inventory management, advertising, guest frequency and loyalty, social responsibility, discount or promotional, training and operating programs, including a property management system that interfaces with the CRS.
Despite The Standardx's right to establish and periodically to modify System Standards for the Hotel and modify the Hotel System as The Standardx deems best, Franchisee retains the right to control, and responsibility for, the Hotel's day-to-day management and operation and implementing and maintaining System Standards at the Hotel. Because complete and detailed uniformity under many varying conditions might not be possible or practical, The Standardx reserves the right, as The Standardx deems best, to vary the Hotel System and System Standards for any Brand Hotel based upon the peculiarities of any condition or factors that The Standardx considers important to that hotel's successful operation. Franchisee has no right to require The Standardx to grant Franchisee a similar variation or accommodation.