What is the guest room range for a Brand Hotel for which The Standardx's Application Fee applies?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Application Fee. The Application Fee listed above is for a Brand Hotel with 125 to 300 guest rooms. We describe the Application Fee and the conditions for its refund in Item 5.
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 application fee detailed in Item 7 applies to Brand Hotels with a guest room range of 125 to 300 rooms. This fee is a one-time, lump sum payment due upon signing the franchise application, and it is paid directly to The Standardx. The amount of the application fee ranges from $95,000 to $145,000. Item 5 of the FDD provides further details about the application fee and the conditions for its refund.
For prospective franchisees, this means that the size of the hotel they plan to develop or convert will directly impact the applicability of the stated application fee. If a franchisee is planning a smaller or larger hotel, the application fee structure may differ. It is important to note that this fee is non-refundable, except for a portion that may be refunded if The Standardx does not approve the application.
Understanding the guest room range associated with the application fee is crucial for budgeting and financial planning. Franchisees should carefully review Item 5 of the FDD to fully understand the conditions for refunds and any potential variations in the application fee structure based on hotel size or other factors. This information helps ensure that franchisees are prepared for the initial financial commitments required to join The Standardx system.