Under what conditions do certain agreements allow The Standardx to assume control of a property?

According to The Standardx's 2025 Franchise Disclosure Document, certain agreements allow The Standardx to assume control of a property under specific conditions. These conditions are tied to debt repayment guarantees that The Standardx provides to its unconsolidated hospitality venture partners, third-party owners, or franchisees.

Specifically, The Standardx has the ability to take control of a property if defined funding thresholds are met or if certain events occur. This implies that if the financial performance of a franchised or managed property falls below a certain level, triggering the need for The Standardx to provide significant financial support under its debt repayment guarantees, The Standardx can step in and assume control of the property. This mechanism protects The Standardx's financial interests in situations where properties it supports are underperforming.

For a prospective franchisee, this means that their property's financial performance is directly linked to the level of control The Standardx might exert. While this provides a safety net in case of financial difficulties, it also means that franchisees could lose control of their property if they are unable to meet certain financial benchmarks and The Standardx is required to provide substantial financial backing. Franchisees should seek clarity on what specific events or funding thresholds would trigger The Standardx's right to assume control.