When is The Standardx franchisee required to pay the Alternative Design Review Fee?

According to The Standardx's 2025 Franchise Disclosure Document, if a franchisee requests that Hyatt, The Standardx franchisor, review alternative plans, designs, or products that differ from those prescribed in Hyatt's prototype plans, the franchisee must pay an Alternative Design Review Fee. The specific amount of this fee is detailed in Exhibit B-1. This fee, like the Design Services Review Fee, is non-refundable.

This requirement means that franchisees need to budget for this potential cost if they anticipate deviating from the standard designs provided by The Standardx. It is important to carefully consider the design standards and prototypes provided to minimize the need for alternative plans, which would trigger this additional fee. Franchisees should also clarify with The Standardx what constitutes an 'alternative' design to avoid unexpected charges.

Understanding the circumstances that trigger the Alternative Design Review Fee is crucial for financial planning. Franchisees should discuss with The Standardx the typical range of these fees and the process for submitting and reviewing alternative designs. This proactive approach can help manage costs and ensure compliance with The Standardx's requirements while still allowing for some customization where necessary.