How is the Additional Application Fee calculated for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------------------------------------------------------------------------------------------------------------------------------| | 6.1(c) | Design Services Review Fee payment date(s) | • Initial payment of $: Effective Date • Remaining $: paid in () equal mon
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the additional application fee is calculated based on the number of additional guest rooms a franchisee adds to the hotel above 200 total guest rooms. The fee is $500 for each additional guest room.
For example, if a franchisee initially plans for 200 rooms and later decides to increase the number of rooms to 250, they would need to pay an additional application fee for the 50 additional rooms. This fee would be calculated as 50 additional rooms multiplied by $500 per room, resulting in an additional application fee of $25,000.
It is important to note that this additional application fee is paid when Hyatt approves the addition of guest rooms before the hotel opens. Furthermore, after the hotel opens, if a franchisee wants to add guest rooms, they must pay Hyatt's then-current PIP (Property Improvement Plan) fee, which is currently $10,000. This PIP fee can be applied toward the additional application fee if Hyatt approves the plans, but if the PIP fee exceeds the additional application fee, Hyatt may keep the excess.