What do the gross fees for The Standardx include?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Gross fees—Gross fees include base management fees, incentive management fees, and franchise and other fees.
Base management fees are generally calculated as a percentage of gross revenues, and incentive management fees are generally computed based on a hotel profitability measure.
Included in the management fees are fees that we earn in exchange for providing the hotel access to Hyatt's intellectual property ("IP").
Franchise and other fees consist of (i) an initial franchise fee and ongoing royalty fees computed as a percentage of gross room revenues and as applicable, food and beverage revenues, (ii) termination fees, (iii) license fees associated with the licensing of the Hyatt brand names through our co-branded credit card programs and with sales of our branded residential units, (iv) management and royalty fees related to the management and licensing of certain of our brands to the Unlimited Vacation Club following the UVC Transaction, and (v) fees from hotel services provided to certain all-inclusive resorts.
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, gross fees encompass several revenue streams. These include base management fees, which are typically calculated as a percentage of gross revenues. Incentive management fees, another component, are generally computed based on a hotel's profitability.
Franchise and other fees also contribute to the gross fees. These consist of several sub-categories: (i) initial franchise fees and ongoing royalty fees, which are calculated as a percentage of gross room revenues and, where applicable, food and beverage revenues; (ii) termination fees; (iii) license fees associated with the licensing of The Standardx brand names through co-branded credit card programs and sales of branded residential units; (iv) management and royalty fees related to the management and licensing of certain of its brands to the Unlimited Vacation Club; and (v) fees from hotel services provided to certain all-inclusive resorts.
Management fees also include compensation for providing the hotel access to Hyatt's intellectual property. Understanding the composition of these gross fees is crucial for prospective franchisees as it directly impacts their revenue obligations and overall profitability. Franchisees should carefully evaluate how these fees are calculated and the potential impact on their financial performance.