What is included in 'Gross Rooms Revenue' for The Standardx besides Total Rooms Revenue?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Gross Rooms Revenue and Royalty Fee. "Gross Rooms Revenue" means "Total Rooms Revenue" or its equivalent, as determined in accordance with the Uniform System of Accounts for the Lodging Industry, Eleventh Edition, as published by the Educational Institute of the American Hotel and Motel Association, 2014, or a later edition that we approve, plus any revenue from resort fees, destination fees, or similar mandatory charges. If you receive any proceeds from any business interruption insurance applicable to the rental of rooms at the Hotel, then there will be added to Gross Rooms Revenue an amount equal to the imputed gross revenues that the insurer used to calculate those proceeds. Inclusion of resort fees, destination fees, or similar fees in "Gross Rooms Revenue" does not constitute our approval of or authorization to charge those fees. Your Royalty Fee will be 5% of Gross Rooms Revenue accrued during the
previous month. If you are constructing a new Hotel, we may agree to reduce your Royalty Fee for the first 1-3 years of the Hotel's operations.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Gross Rooms Revenue includes more than just Total Rooms Revenue. Specifically, Gross Rooms Revenue also incorporates any revenue generated from resort fees, destination fees, or similar mandatory charges that the hotel may levy.
Additionally, the definition of Gross Rooms Revenue includes any proceeds from business interruption insurance related to room rentals. In the event that The Standardx hotel experiences a business interruption and receives insurance proceeds, the imputed gross revenues used by the insurer to calculate those proceeds are added to the Gross Rooms Revenue.
It is important to note that while resort fees, destination fees, or similar charges are included in the calculation of Gross Rooms Revenue, this inclusion does not indicate that The Standardx approves or authorizes the franchisee to charge these fees. The Royalty Fee that the franchisee will be required to pay is 5% of the Gross Rooms Revenue accrued during the previous month.