Is the PIP fee for The Standardx refundable?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
pproves Franchisee's plans. If the PIP fee exceeds the additional Application Fee, Hyatt may keep the excess. The remaining portion of the additional Application Fee is due, fully earned by Hyatt, and non-refundable on the date Hyatt approves Franchisee's plans to develop the additional guest rooms.
- (b) Franchisee shall pay Hyatt the "IT Project Management Services Fee" set forth in Exhibit B-1, plus any applicable taxes thereon. The IT Project Management Services Fee is non-refundable. Franchisee shall reimburse Hyatt's or its Affiliate's reasonable expenses in connection with rendering the IT Project Management Services, including any necessary transportation, lodging and meals, plus applicable taxes thereon. The IT Project Management Services Fee (including expenses) will be invoiced by Hyatt no earlier than: (i) Hyatt's completion of the IT Project Management Services or (ii) upon Franchisee's termination of the Hotel development project or the IT Project Management
Services, for any reason, in either event regardless of whether Hyatt has approved the Hotel for opening.
- (c) If Franchisee is constructing a new Hotel, adapting a non-hotel space for use as a Hotel, or conducting a significant renovation of an existing hotel in connection with conversion to a Brand Hotel, Franchisee shall pay Hyatt a design services review fee (the "Design Services Review Fee") as set forth in Exhibit B-1. In addition, if Franchisee requests Hyatt's review of alternative plans, design or products other than those prescribed by Hyatt's prototype plans, Franchisee must pay Hyatt an alternative design review fee (the "Alternative Design Review Fee") as set forth in Exhibit B-1.
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 PIP (Property Improvement Plan) fee is generally non-refundable. Specifically, if a franchisee wants to add guest rooms to the hotel after it opens, they must pay The Standardx's current PIP fee, and this fee is non-refundable. However, The Standardx will apply this PIP fee toward the additional Application Fee if they approve the franchisee's plans. If the PIP fee exceeds the additional Application Fee, The Standardx may keep the excess.
Furthermore, if a franchisee exercises their Successor Franchise Right, they must pay The Standardx's then-current PIP fee simultaneously with submitting their notice, and this fee is also non-refundable. Failure to provide notice or pay the PIP fee within the specified timeframe is considered a decision not to exercise the Successor Franchise Right.
In general, unless otherwise specified in the Franchise Disclosure Document, all fees paid to The Standardx or its affiliates before, during, or simultaneously with the execution of the agreement are non-refundable. This blanket statement reinforces the non-refundable nature of the PIP fee, as detailed in the specific instances mentioned above.