What was the total value of HTM debt securities held by The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| HTM debt securities (1) | $ 296 | $ 276 |
| Less: allowance for credit losses | (9) | (9) |
| Total HTM debt securities, net of allowances | $ 287 | $ 267 |
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the total value of HTM (held-to-maturity) debt securities held by The Standardx was $296 million as of March 31, 2025, and $276 million as of December 31, 2024. These values are before accounting for any allowance for credit losses.
The FDD also indicates that The Standardx accounts for potential credit losses associated with these securities. As of both March 31, 2025, and December 31, 2024, the allowance for credit losses was ($9) million. After deducting this allowance, the total HTM debt securities, net of allowances, amounted to $287 million as of March 31, 2025, and $267 million as of December 31, 2024.
It is important to note that these HTM debt securities are investments in third-party entities associated with certain of The Standardx's hotels and are redeemable on various dates through 2062. These securities are recorded within other assets on the condensed consolidated balance sheets of The Standardx. A prospective franchisee should understand the nature and risk profile of these investments, as they can impact the overall financial health of The Standardx.