What is the range for the Application Fee for a The Standardx franchise, and to whom is it paid?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Application Fee (1) | $95,000 to $145,000 | Lump sum | Upon signing franchise application | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–40)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the Application Fee for a Brand Hotel with 125 to 300 guest rooms ranges from $95,000 to $145,000. This fee is paid in a lump sum to The Standardx upon signing the franchise application. This fee is partially refundable if The Standardx does not approve the application, as detailed in Item 5.
The Application Fee is part of the total estimated initial investment, which ranges from $28,378,455 to $87,936,518, excluding real estate costs. This substantial investment reflects the scale of developing a new, full-size Brand Hotel according to The Standardx's Design and Construction Standards and the Hotel System. Prospective franchisees should carefully review all estimated costs with a business advisor before making a decision.
It is important to note that these figures are estimates, and actual costs may vary based on factors such as management skill, local economic conditions, and competition. The FDD advises that costs for land, whether leased or purchased, are not included in these estimates due to wide variations in geographic location, size, and local rental rates. Franchisees converting an existing hotel to The Standardx brand will also incur upgrade and renovation costs to meet current brand standards, as determined by a Property Improvement Plan (PIP).