For The Standardx, what is included in the 'Upsell Revenue' calculation for commission purposes?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
As part of these other corporate services, the Hyatt Group currently provides "upsell" services for Brand Hotels and other Participating Hotels, offering room upgrades to guests having reservations at the Hotel before they arrive. If the guest purchases the room upgrade, you must pay the Hyatt Group a commission on the additional revenue. That commission currently is 5% of the difference between the Gross Rooms Revenue at the upgraded rate and the Gross Rooms Revenue at the rate the guest originally booked, excluding taxes (the "Upsell Revenue"). The Upsell Revenue currently does not include any additional revenue resulting from the upgrade, such as early arrival fees and additional revenue derived from upgrades to the F&B Operations.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, 'Upsell Revenue' is specifically defined for commission calculation purposes. The commission paid to The Standardx is 5% of the 'Upsell Revenue.'
The 'Upsell Revenue' is calculated as the difference between the Gross Rooms Revenue at the upgraded rate and the Gross Rooms Revenue at the rate the guest originally booked, excluding taxes. This means the commission is based solely on the increased room revenue due to the upgrade, without considering any taxes applied to that revenue.
However, the 'Upsell Revenue' calculation does not include additional revenue resulting from the upgrade, such as early arrival fees or additional revenue derived from upgrades to the Food and Beverage ('F&B') Operations. Therefore, The Standardx franchisees only pay a commission on the room revenue increase, not on any ancillary services or products the guest may purchase as a result of the upgrade.