What is the meaning of 'PIP' in the context of converting an existing hotel to The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are converting an existing hotel from another brand to the Hotel System, we will inspect the hotel and prepare a PIP to provide details on our upgrade requirements. Each Comfort Letter Party must sign a comfort letter or similar agreement that we reasonably specify. (Sections 2.1 and 2.7 of Franchise Agreement)
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- Communicate our then current specifications and requirements for designing and developing a Brand Hotel, including the Design and Construction Standards. We will provide a briefing virtually, at our headquarters, or at another location we designate, to acquaint your managing owner or senior operations officer with our building process and support structure. If you are constructing a new Hotel at the site, you must design and construct the Hotel according to our Design and Construction Standards and Hotel System, and we and/or Hyatt Corporation will provide technical and design assistance related to the Hotel's development. If you are converting an existing hotel from another brand to the Hotel System, you must renovate the Hotel according to the PIP, which may reference some or all of our Design and Construction Standards and the Hotel System. The PIP is attached to the Franchise Agreement when we and you sign it. You may not
make any material changes to plans set forth in the PIP (including any changes to any structural or life safety equipment or systems, the number and/or type of guest rooms or common areas, or any architectural features), without our prior written consent, which we will not unreasonably withhold.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–64)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, when converting an existing hotel from another brand to The Standardx brand, The Standardx will inspect the hotel and prepare a PIP. The PIP provides details on The Standardx's upgrade requirements. The PIP is attached to the Franchise Agreement when both parties sign it.
In simpler terms, a PIP outlines the specific renovations and upgrades that must be made to an existing hotel to meet The Standardx's brand standards. This ensures that all hotels operating under The Standardx name maintain a consistent level of quality and guest experience.
For a prospective franchisee, the PIP is a critical document. It details the financial investment required to bring the existing hotel up to The Standardx standards. Franchisees cannot make material changes to the PIP without prior written consent from The Standardx. Understanding the scope and cost of the PIP is essential for budgeting and assessing the feasibility of converting a hotel to The Standardx brand.