Can the monthly fee for The Standardx's Digital Ancillary Services Program increase?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| If the Hotel is damaged by fire, flood, accident, hurricane or other casualty, you must | |
|---|---|
| notify us immediately. If the cost to repair the damage is less than or equal to the greater of (a) | |
| 60% of the market value of the Hotel immediately prior to the casualty, or (b) the amount of | |
| insurance proceeds made available to you in connection with the casualty (“Damage Threshold”), | |
| Column 1 | Column 2 |
| Type of Fee | Amount |
| Global Property Guest Services (GPGS) Add-On Program | Will vary depending on services selected. Currently, $3.50 to $16 per service interaction requested, but could increase if costs increase |
| Digital Ancillary Services Program | Currently, $1,250 per month plus commission payable to our vendor of 5% of net revenue actually received from bookings through the vendor's channels, but could |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the monthly fee for the Digital Ancillary Services Program is subject to change. Currently, the fee is $1,250 per month, in addition to a 5% commission payable to The Standardx's vendor based on net revenue from bookings made through the vendor's channels. However, the FDD states explicitly that this fee "could increase if costs increase."
This means that as a franchisee, you should anticipate potential increases to this monthly fee during the term of your franchise agreement. The increase is tied to the vendor's costs, so it is not directly controlled by The Standardx, but rather by external market factors affecting the vendor's operational expenses.
It is important to factor in potential fee increases when projecting your operating expenses and revenue. While the current fee is $1,250 per month, it could rise depending on market conditions and the vendor's cost structure. A prospective franchisee should inquire about the historical frequency and magnitude of these increases to better understand the potential financial impact on their business.