When is The Standardx franchisee required to pay the Design Services Review Fee?
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 |
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 Design Services Review Fee payment schedule is broken down into two parts. The initial payment, the amount of which is not specified in the excerpt, is due on the Effective Date of the franchise agreement. The remaining balance, also with an unspecified total amount, is paid in equal monthly installments. The number of installments and the amount of each installment are not specified in the excerpt. The first of these monthly installments is due on a date in 20__, which is also not specified in the excerpt.
It is important to note that these fees are non-refundable, as stated in Item 18. This means that once paid, the franchisee cannot recover these fees, even if the hotel project does not proceed as planned. This is a standard practice in franchising, as these fees cover the franchisor's costs in providing design review services.
Prospective franchisees should carefully review Exhibit B-1 of The Standardx's Franchise Agreement to determine the exact amounts and due dates for both the initial payment and the remaining monthly installments of the Design Services Review Fee. Understanding the payment schedule and the non-refundable nature of these fees is crucial for budgeting and financial planning.