Where can I find the specific fees associated with The Standardx's agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Section | Subject | Applicable Term | |---|---|---|---| | 6.1(c) | | Design Services Review Fee payment date(s) | • Initial payment of $: Effective Date • Remaining $: paid in _____________ () equal monthly installments of $_______ each, with the first such installment due and payable on , 20 | | 6.1(c) | | Alternative Design Review Fee amount | $_____________ | | 6.2(a) | | Royalty Fee | Five percent (5%) of the Hotel’s Gross Rooms Revenue accrued during the preceding month | | 10.1 | | Per room liquidated damages – condemnation | Five Thousand Dollars ($5,000) | | 16.5 | | Liquidated Damages | (a) the lesser of thirty-six (36) or the number of months then remaining in this Agreement’s term had it not been terminated, multiplied by (b) the sum of (i) the Average Monthly Revenue times five percent (5%) for lost future Royalty Fees, plus (ii) the Average Monthly Revenue times three and one-half percent (3.5%) for lost future System Services Charges | Applicant hereby expressly acknowledges that acceptance and deposit of the application fee by Franchisor does not, in any respect, bind or obligate Franchisor to enter into a Franchise Agreement granting Applicant a franchise. This Application is neither an offer of a franchise by Franchisor nor a contract for the acquisition of a franchise or any other rights to operate a Hyatt-affiliated Hotel. Applicant further acknowledges that the research, investigation, review and approval process and similar administrative functions of Franchisor constitute the sole and only consideration for the application fee submitted herewith. If Applicant withdraws this Application before Franchisor approves it, or if Franchisor does not approve this Application for any reason, Franchisor will refund Applicant's application fee less a $5,000 fee to cover Franchisor's costs associated with evaluating this Application; however, after Franchisor approves this Application, Applicant's application fee is not refundable, even if Franchisor and Applicant do not sign a Franchise Agreement. Franchisee must pay Hyatt's reasonable fees and reimburse Hyatt's expenses in connection with such assistance. If Franchisee requests, and Hyatt agrees to provide, additional or special guidance, assistance, or training, Franchisee agrees to pay Hyatt's then applicable charges and travel and living expenses. Upon termination of this Agreement, Owner shall remit to Hyatt payment for Services rendered through the effective date of termination pursuant to any applicable Schedule. The fee for the Services is a portion of and included in the System Services Charges (as defined in the Franchise Agreement). For the avoidance of doubt, the fees and expenses payable to all the Consultants (including, without limitation, the salary and expenses of the Project Manager and any FF&E Manager engaged by Franchisee in connection with the planning, building, furnishing, equipping and decorating of the Hotel, and any and all costs and expenses incurred by Hyatt's IT support services personnel), shall be paid directly by Franchisee independent of any fees paid by Franchisee under the Franchise Agreement.
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, specific fees associated with the franchise agreement can be found in various sections. The fees include the Design Services Review Fee, which requires an initial payment upon the effective date and subsequent monthly installments. There is also an Alternative Design Review Fee. Franchisees must also pay a Royalty Fee, calculated as five percent of the Hotel’s Gross Rooms Revenue accrued monthly.
Additional fees may include liquidated damages for condemnation, set at $5,000 per room. Liquidated damages may also apply upon termination of the agreement, calculated based on lost future Royalty Fees (5% of Average Monthly Revenue) and lost future System Services Charges (3.5% of Average Monthly Revenue), multiplied by the remaining months in the agreement's term, up to 36 months. Franchisees are also responsible for Hyatt's reasonable fees and expenses for CRS, GDS, ADS, and IT services, as well as charges and travel expenses for additional guidance, assistance, or training provided by Hyatt.
An application fee is required with the franchise application, with a $5,000 deduction to cover evaluation costs if the application is withdrawn or not approved. The franchisee is also responsible for fees associated with services rendered through the termination date of the agreement. The fees for services are included in the System Services Charges as defined in the Franchise Agreement. Franchisees are also responsible for payments to consultants and Hyatt's IT support services personnel independent of fees paid under the Franchise Agreement.
Prospective franchisees should carefully review each of these potential fees and understand the conditions under which they may be incurred. It is important to clarify the amounts of unspecified fees and payment schedules with The Standardx during the due diligence process to fully understand the financial obligations of the franchise agreement.