For how long might The Standardx receive a reduced Royalty Fee for a new hotel?

According to The Standardx's 2025 Franchise Disclosure Document, if a franchisee is constructing a new hotel, The Standardx may agree to reduce the Royalty Fee for the first 1 to 3 years of the hotel's operations. The standard Royalty Fee is 5% of Gross Rooms Revenue accrued during the previous month.

This potential reduction in Royalty Fees can significantly benefit a new The Standardx hotel owner during the initial years of operation. By lowering the financial burden of franchise fees, the franchisee can allocate more capital towards other critical areas such as marketing, staff training, and property improvements. This can lead to a stronger foundation for the business and increased potential for long-term success.

However, the FDD states that the reduction is not guaranteed. The Standardx "may agree" to reduce the royalty fee, indicating that it is subject to negotiation and the franchisor's discretion. A prospective franchisee should discuss the specific conditions and criteria for obtaining this reduction with The Standardx during the franchise application process. Understanding the factors that influence The Standardx's decision will be crucial for financial planning and forecasting.