When is The Standardx PIP Preparation Fee due, and is it refundable?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
eparation Fee
If you are converting an existing structure to a Brand Hotel, you will pay us a nonrefundable fee of $10,000 for our preparation of the Property Improvement Plan (the "PIP"), which will detail the improvements necessary to renovate the structure to a Brand Hotel, at the time you submit your franchise application and the Ap
Source: Item 5 — INITIAL FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, if a franchisee is converting an existing structure to a Brand Hotel, they must pay a $10,000 Property Improvement Plan (PIP) preparation fee. This fee covers The Standardx's cost of preparing the PIP, which details the improvements needed to renovate the existing structure to meet The Standardx's brand standards.
The PIP Preparation Fee is due at the time the franchisee submits their franchise application, along with the Application Fee. This means that the franchisee needs to be prepared to pay this fee upfront as part of the initial application process.
Importantly, the FDD states that the $10,000 PIP Preparation Fee is nonrefundable. This means that once the fee is paid, it will not be returned to the franchisee under any circumstances, regardless of whether the franchise agreement is ultimately signed or the conversion project is completed. This is a key consideration for prospective franchisees evaluating the costs and risks associated with converting an existing property to a The Standardx hotel.