Is the initial Application Fee for The Standardx refundable if the franchise application is approved?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ent. Franchisor shall not be deemed to have knowledge of any facts not contained in this Application or in the attached documents.
Included with this Application is the application fee in the amount specified in the FDD or letter of intent. Applicant hereby expressly acknowledges that acceptance and deposit of the application fee by Franchisor does not, in any respect, bind or obligate Franchisor to enter into a Franchise Agreement granting Applicant a franchise. This Application is neither an offer of a franchise by Franchisor nor a contract for the acquisition of a franchise or any other rights to operate a Hyatt-affiliated Hotel. Applicant further acknowledges that the research, investigation, review and approval process and similar administrative functions of Franchisor constitute the sole and only consideration for the application fee submitted herewith. If Applicant withdraws this Application before Franchisor approves it, or if Franchisor does not approve this Application for any reason, Franchisor will refund Applicant's application fee less a $5,000 fee
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, the initial application fee is generally non-refundable once the application is approved by Hyatt, the franchisor. Specifically, if an applicant withdraws their application before The Standardx approves it, or if The Standardx does not approve the application for any reason, The Standardx will refund the application fee, less a $5,000 fee to cover the costs associated with evaluating the application. However, once The Standardx approves the application, the fee is not refundable, even if a Franchise Agreement is not ultimately signed.
This means that a prospective The Standardx franchisee should be certain of their decision before submitting an application, as the application fee becomes non-refundable upon approval. The $5,000 deduction from the refund if the application is withdrawn or denied covers The Standardx's costs for the evaluation process. This policy is fairly standard in the franchise industry, as franchisors incur costs in reviewing applications and assessing potential franchisees.
It is important for potential franchisees to understand this policy and factor it into their decision-making process. They should carefully review all aspects of the franchise opportunity and conduct thorough due diligence before submitting an application to The Standardx. Understanding the conditions under which the application fee is refundable can help franchisees avoid potential financial losses.