What was the total amount of The Standardx's unsecured financing to hotel owners and unconsolidated hospitality ventures as of December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Secured financing to hotel owners | $ 151 | $ 150 |
| Unsecured financing to hotel owners and unconsolidated hospitality ventures (1) | 310 | 295 |
| Total financing receivables | $ 461 | $ 445 |
| Less: current portion of financing receivables included in receivables, net | (60) | (41) |
| Less: allowance for credit losses (2) | (42) | (36) |
| Total long-term financing receivables, net of allowances | $ 359 | $ 368 |
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, as of December 31, 2024, the company had $295 in unsecured financing to hotel owners and unconsolidated hospitality ventures. This figure represents the total amount of financing The Standardx has extended without collateral to these entities.
For a prospective franchisee, this indicates the level of financial risk The Standardx is willing to undertake in supporting hotel owners and related ventures. It is important to note that this financing is unsecured, meaning that in the event of default, The Standardx may have limited recourse to recover these funds. This could potentially impact the financial stability of The Standardx, which in turn could affect the support and services it provides to its franchisees.
It is advisable for potential franchisees to further investigate the nature of these financing arrangements, the creditworthiness of the recipients, and the potential impact on The Standardx's financial health. Understanding the risks associated with these unsecured financings can help a franchisee make a more informed decision about investing in The Standardx franchise system.