When is the fee for The Standardx Comfort Letter due?
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 the Comfort Letter is due prior to or simultaneous with its execution. The franchisee or lender is responsible for paying Hyatt a fee of $2,500 in connection with the Comfort Letter.
In practical terms, this means that if a franchisee requires a Comfort Letter, typically involving a lender who is providing financing for the hotel, the $2,500 fee must be paid to The Standardx (Hyatt) before or at the same time the Comfort Letter agreement is signed. This ensures that The Standardx receives payment for providing the assurances and agreements outlined in the letter.
It is important for prospective The Standardx franchisees to factor this cost into their initial investment and financing arrangements. The Comfort Letter provides certain assurances to the lender, such as notice of default and opportunities to cure defaults, which can be critical for securing financing. Franchisees should coordinate with their lender and The Standardx to ensure timely payment of this fee to avoid any delays in finalizing their financing and franchise agreements.