When is the PIP attached to the Franchise Agreement for 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)
-
- 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
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, the PIP (Property Improvement Plan) is attached to the Franchise Agreement when both The Standardx and the franchisee sign the agreement. This applies specifically when an existing hotel is being converted to The Standardx brand. The PIP outlines the required renovations to meet The Standardx's standards and the Hotel System standards.
This means that a prospective franchisee converting an existing hotel will receive a detailed plan of required upgrades at the time of signing the franchise agreement. This allows the franchisee to understand the scope of work and associated costs upfront. The PIP may reference The Standardx's Design and Construction Standards and the Hotel System standards, ensuring the converted hotel aligns with the brand's requirements.
It is important for potential franchisees to carefully review the PIP before signing the Franchise Agreement, as it will dictate the necessary investments to bring the existing hotel up to The Standardx standards. Any material changes to the PIP after signing require The Standardx's written consent, which they will not unreasonably withhold. Understanding the PIP is crucial for budgeting and planning the conversion process.