Is the IT Project Management Services Fee for The Standardx refundable?

According to The Standardx's 2025 Franchise Disclosure Document, the IT Project Management Services Fee is non-refundable. Specifically, the franchisee is required to pay this fee, along with any applicable taxes. This fee covers Hyatt's services related to IT project management for the hotel. Franchisees are also responsible for reimbursing Hyatt's or its affiliate's reasonable expenses for these services, including transportation, lodging, and meals.

The IT Project Management Services Fee, including any associated expenses, will be invoiced either upon Hyatt's completion of the IT Project Management Services or if the franchisee terminates the hotel development project or the IT Project Management Services for any reason. This invoicing occurs regardless of whether Hyatt has approved the hotel for opening. This means that even if the project is halted or canceled, the franchisee is still liable for the fee.

This non-refundable nature of the IT Project Management Services Fee has significant implications for prospective The Standardx franchisees. It means that franchisees must be certain about their development plans and financial capabilities before proceeding, as they will not be able to recover this fee should they decide to terminate the project or if Hyatt completes the services. This is a standard practice in franchising, where initial fees and certain service fees are often non-refundable to compensate the franchisor for their time and resources invested in the project.