When will Hyatt invoice the IT Project Management Services Fee for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee shall pay Hyatt the "IT Project Management Services Fee" set forth in Exhibit B-1, plus any applicable taxes thereon. The IT Project Management Services Fee is non-refundable. Franchisee shall reimburse Hyatt's or its Affiliate's reasonable expenses in connection with rendering the IT Project Management Services, including any necessary transportation, lodging and meals, plus applicable taxes thereon. The IT Project Management Services Fee (including expenses) will be invoiced by Hyatt no earlier than: (i) Hyatt's completion of the IT Project Management Services or (ii) upon Franchisee's termination of the Hotel development project or the IT Project Management
Services, for any reason, in either event regardless of whether Hyatt has approved the Hotel for opening.
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, Hyatt will invoice the IT Project Management Services Fee under specific conditions. Hyatt will invoice this fee no earlier than the completion of the IT Project Management Services. Alternatively, Hyatt may invoice the fee upon the franchisee's termination of the hotel development project or the IT Project Management Services, regardless of whether Hyatt has approved the hotel for opening.
This means that as a prospective The Standardx franchisee, you should anticipate this invoice either when the IT project is finished and signed off, or if you decide to halt the project prematurely. The fee is non-refundable, so this is a financial obligation to consider carefully. The exact amount of the IT Project Management Services Fee is detailed in Exhibit B-1, which is not provided in the excerpt.
It is important for a prospective The Standardx franchisee to understand the scope of the IT Project Management Services, as detailed in Exhibit E, to ensure that the services are completed to satisfaction. Additionally, franchisees should maintain open communication with Hyatt throughout the IT project to avoid any misunderstandings or potential for early termination, which would still trigger the invoice for the full fee.