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What is the one-time cost for The Standardx's PBX Services, per occupied room?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

SERVICES BY HYATT MASTER AGREEMENT**

This Digital Ancillary Program Schedule ("Schedule") is made effective as of [INSERT DATE] ("Schedule Effective Date") subject to and part of the Central Hotel Services by Hyatt Master Agreement entered into by the parties listed in the signature block below. All capitalized t

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 one-time cost for PBX Services is $1.30 USD per occupied room. This fee is part of the other income (loss), net, as detailed in Item 18. PBX Services involve Hyatt accepting and responding to guest calls routed to the property's front desk and handling basic requests in HotSOS, following regularly scheduled service hours determined by Hyatt. The property must reasonably cooperate with Hyatt to ensure high-quality service in accordance with brand guidelines and Hyatt's industry standards.

This one-time cost is a relatively minor expense compared to other potential costs, such as design service review fees, royalty fees, or liquidated damages outlined elsewhere in the FDD. However, it's important for prospective franchisees to factor this cost into their initial investment calculations, especially considering the number of rooms in their hotel. While seemingly small, these per-room charges can accumulate, impacting the overall financial outlay.

It is also important to note that this fee is separate from any ongoing service fees or costs associated with maintaining the PBX system. The FDD mentions that Hyatt may periodically change its method of allocation of System Services Costs among Participating Hotels, provided that such method of allocation and categories of Participating Hotels shall at all times be determined on a reasonable, equitable and nondiscriminatory basis. Franchisees should inquire about any potential future changes to these fees and how they might affect their operational costs.

In summary, the $1.30 per occupied room one-time cost for PBX Services represents a specific, albeit small, initial expense for The Standardx franchisees. Understanding this cost and its associated services is crucial for accurate financial planning and ensuring compliance with Hyatt's service standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.