What are all the initial fees The Standardx charges as detailed in Item 5 and Item 7?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
this Item.
INITIAL FEES
Application Fee
You will pay us a lump-sum application fee (the "Application Fee") when you submit the franchise application through our online application portal. The Application Fee is $95,000 plus an additional $500 for each guest room in the Hotel over 200 rooms. If you withdraw your franchise application before we approve it, or if we do not approve your franchise application for any reason, then we will refund your Application Fee less a $7,500 fee to cover our costs for evaluating your application. After we approve your franchise application, the Application Fee is not refundable, even if we and you do not sign a Franchise Agreement. If you and we agree to add any guest rooms to the Hotel before the Hotel opens, then you must pay us, when we approve the additional guest rooms, an additional non-refundable Application Fee of $500 multiplied by the number of additional guest rooms over 200 total guest rooms at the Hotel.
PIP Preparation Fee
If you are converting an existing structure to a Brand Hotel, you will pay us a nonrefundable fee of $10,000 for our preparation of the Property Improvement Plan (the "PIP"), which will detail the improvements necessary to renovate the structure to a Brand Hotel, at the time you submit your franchise application and the Application Fee.
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What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, there are several initial fees that a franchisee may encounter. The most prominent of these is the Application Fee, which ranges from $95,000 to $145,000, depending on the number of guest rooms in the hotel. Specifically, the fee is $95,000 plus an additional $500 for each guest room over 200. This fee is paid when the franchise application is submitted. If the application is withdrawn or not approved, The Standardx will refund the Application Fee, less a $7,500 fee to cover evaluation costs. There is also a PIP Preparation Fee of $10,000 if converting an existing structure to a The Standardx Brand Hotel.
Item 7 outlines further potential initial fees. A Comfort Letter Fee ranging from $0 to $2,500 is due when the franchisee's lenders sign a comfort letter with The Standardx. There is also an Alternative Design Review Fee ranging from $0 to $30,000. An Extension of Opening Deadline fee ranges from $0 to $10,000, payable when requesting an extension to the hotel opening deadline. Franchisees may also be charged an IT Project Management Services fee ranging from $64,995 to $69,630, which is due before the hotel opens.
Additional initial fees include revenue management fees, which range from $0 to $17,500, and field marketing program fees, ranging from $0 to $24,723. These are paid monthly if the franchisee participates in these programs. Training expenses also represent a significant initial investment, with fees and reimbursements payable to The Standardx ranging from $18,775 to $41,705, and the franchisee and their personnel's costs to attend training ranging from $20,085 to $27,810. These fees are payable as incurred. These initial fees do not include expenses such as signage, telecommunications systems, architecture and design, construction, furniture, operating supplies, liquor licenses, and pre-opening marketing, which are paid to third-party suppliers.