How are base management fees generally calculated for The Standardx?

According to The Standardx's 2025 Franchise Disclosure Document, base management fees are generally calculated as a percentage of gross revenues. These fees, along with incentive management fees and franchise fees, are categorized as gross fees. The incentive management fees are typically based on a hotel profitability measure. These management fees also include compensation for providing the hotel access to Hyatt's intellectual property.

The base management and hotel services fees are usually due and payable monthly as services are provided. Incentive fees, on the other hand, are due and payable based on the specific terms outlined in the agreement, but they are billed and collected at least annually. The revenues are recognized over time as the services are rendered.

For a prospective franchisee, this means that a portion of their gross revenues will be allocated to The Standardx as a base management fee. The exact percentage will likely be detailed in the franchise agreement. Additionally, they may be subject to incentive fees if certain profitability targets are met. Understanding how these fees are calculated and when they are due is crucial for managing the financial aspects of the franchise.