What is the fee for The Standardx Comfort Letter?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ary surrender by Franchisee of the Franchise (to the extent that Hyatt is aware in advance of any such voluntary surrender) and (b) furnish Lender with copies of default notices sent by Hyat
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 fee for a Comfort Letter is $2,500. This fee is to be paid to Hyatt by either the franchisee or the lender prior to or simultaneous with the execution of the Comfort Letter.
A Comfort Letter is an agreement between Hyatt, the franchisee, and the lender, often associated with loans secured by the hotel. The Comfort Letter outlines certain agreements, such as Hyatt providing the lender with notice of any voluntary surrender of the franchise by the franchisee and furnishing copies of default notices. This letter provides the lender an opportunity to cure any defaults by the franchisee within a specified timeframe.
Additionally, if the lender assigns the Comfort Letter to another holder of the loan documents, a processing charge of $7,500 is payable to Hyatt. This assignment also requires the execution and delivery of an assignment and assumption agreement among the lender, assignee, and franchisee. These fees contribute to Hyatt's other income and are separate from initial franchise fees, royalties, and other standard franchise costs.