Is the Design Services Review Fee refundable for The Standardx franchisees?

According to The Standardx's 2025 Franchise Disclosure Document, the Design Services Review Fee and the Alternative Design Review Fee are non-refundable. This means that once a franchisee pays these fees to The Standardx, they cannot get the money back, regardless of whether the hotel opens or if the franchisee terminates the hotel development project.

This non-refundable policy has significant implications for prospective franchisees. It means that franchisees need to be certain about their decision to proceed with the franchise before paying these fees. If a franchisee's plans change or the project falls through, they will not be able to recover the Design Services Review Fee or the Alternative Design Review Fee. This represents a financial risk that franchisees must consider.

Franchisors often charge fees for services like design review, and it is not uncommon for these fees to be non-refundable, as the franchisor incurs costs in providing these services. However, franchisees should carefully evaluate the services provided in exchange for these fees and the likelihood of project success before committing to the franchise. Understanding the specific services covered by the Design Services Review Fee and the Alternative Design Review Fee is crucial for making an informed investment decision with The Standardx.