What is the estimated range for additional funds needed for the first 3 months of operating The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 Type of expenditure | Column 2 Amount | Column 3 Method of Payment | Column 4 When due | Column 5 To whom payment is to be made |
|---|---|---|---|---|
| Additional funds - 3 months (10) | $360,000 to $675,000 | As agreed | As incurred | Suppliers, employees, us and Hyatt Corporation |
Additional funds 3 months.
This item estimates your initial start-up expenses (other than the items identified separately in the table).
These expenses include payroll costs for the Hotel's personnel but not any management fees or similar draw.
These figures are estimates, and we cannot guarantee that you will not have additional expenses starting the business.
Your costs depend on how closely you follow our methods and procedures; your management skill,
experience, and business acumen; local economic conditions; the local market for the Hotel's services; the prevailing wage rate; competition; and the sales level reached during the initial period.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–40)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees should anticipate needing between $360,000 and $675,000 in additional funds to cover the first three months of operation. These funds are intended to cover initial start-up expenses not explicitly listed in the initial investment table.
The FDD specifies that these additional funds will primarily be used for payroll costs for the hotel's personnel, but will not cover management fees or similar draws. The document emphasizes that these figures are estimates and that actual expenses may vary. Several factors can influence these costs, including adherence to The Standardx's methods and procedures, the franchisee's management skills, local economic conditions, the local market for the hotel's services, prevailing wage rates, competition, and the sales level achieved during the initial period.
Prospective franchisees should carefully consider these variables and conduct thorough market research to assess the potential financial demands of launching a The Standardx franchise. It is crucial to review these figures with a business advisor to develop a realistic financial plan.
The FDD clarifies that this estimate is based on The Standardx's affiliates' experience in developing and operating hotels since 1957. This suggests that the estimate is grounded in historical data, but franchisees should still perform their own due diligence to account for current market conditions and individual circumstances.