How are the purchasing fees determined for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| If the Hotel is damaged by fire, flood, accident, hurricane or other casualty, you must | |
|---|---|
| notify us immediately. If the cost to repair the damage is less than or equal to the greater of (a) | |
| 60% of the market value of the Hotel immediately prior to the casualty, or (b) the amount of | |
| insurance proceeds made available to you in connection with the casualty (“Damage Threshold”), | |
| Column 1 | Column 2 |
| Type of Fee | Amount |
| Global Property Guest Services (GPGS) Add-On Program | Will vary depending on services selected. Currently, $3.50 to $16 per service interaction requested, but could increase if costs increase |
| Digital Ancillary Services Program | Currently, $1,250 per month plus commission payable to our vendor of 5% of net revenue actually received from bookings through the vendor's channels, but could increase if costs increase |
| Purchasing | Will vary depending on |
| services | items purchased |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the purchasing fees will vary depending on the items purchased. This means that franchisees will incur different costs based on the specific goods or services they acquire through approved or mandated purchasing programs.
This fee structure is common in franchising, where franchisors often negotiate bulk discounts with suppliers and then pass those savings (or a portion thereof) on to franchisees. However, it also means that a franchisee's costs can fluctuate, making budgeting somewhat unpredictable. Franchisees should carefully track their purchases and compare prices to ensure they are receiving competitive rates.
Prospective The Standardx franchisees should inquire about which items or services are subject to these purchasing fees, which vendors are approved or mandated, and whether there are any mechanisms in place to ensure fair pricing. Understanding the range of potential purchasing costs is crucial for assessing the overall profitability of a The Standardx franchise.