What general and administrative costs are included in The Standardx's estimated initial investment?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
s that we describe in Note 2 above.
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- General and administrative. This item includes costs for permit fees, security deposits, utility deposits and startup requirements, impact fees (one-time charges that the government levies to offset service costs relating to the new development), tap fees (charges for connecting to existing water or sewer lines), and various business licenses. Landlords sometimes pay some of the tap or impact fees, and the amount depends on municipal requirements and the final Hotel configuration. This item also includes costs for insurance, legal and accounting expenses**.**
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- Revenue management fees and field marketing program fees. These items include revenue management program fees and field marketing program fees, respectively, during the preopening period and the first 3 months of operation. We describe these fees in Item 5.
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–40)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the general and administrative costs included in the estimated initial investment cover a range of expenses necessary to start the business. These costs, estimated to be between $320,000 and $500,000, encompass permit fees, security deposits, utility deposits, and startup requirements. Additionally, they include impact fees, which are one-time charges levied by the government for new developments, and tap fees, which are charges for connecting to existing water or sewer lines. The payments are due as incurred to third parties.
The FDD specifies that these general and administrative costs also account for various business licenses, insurance, and legal and accounting expenses. The amount of tap or impact fees can vary, with landlords sometimes covering a portion of these costs. The final amount depends on municipal requirements and the hotel's configuration.
Prospective franchisees should carefully consider these costs and understand that the final amount can fluctuate based on location, the specific requirements of local governments, and the size and configuration of the hotel. It is advisable to consult with business advisors and local authorities to get a more precise estimate of these expenses before making a final decision.