What is the refund policy for The Standardx application fee if the application is withdrawn or not approved?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
plication Fee
You will pay us a lump-sum application fee (the "Application Fee") when you submit the franchise application through our online application portal. The Application Fee is $95,000 plus an additional $500 for each guest room in the Hotel over 200 rooms. If you withdraw your franchise application before we approve it, or if we do not approve your franchise application for any reason, then we will refund your Application Fee less a $7,500 fee to cover our costs for evaluating your application. After we approve your franchise application, the Application Fee is not refundable, even if we and you do not sign a Franchise Agreement. If you and we agree to add any guest rooms to the Hotel before the Hotel opens, then you must pay us, when we approve the additional guest rooms, an additional non-refundable Application Fee of $500 multiplied by the number of additional guest rooms over 200 total guest rooms
Source: Item 5 — INITIAL FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the application fee is partially refundable under specific conditions. The initial application fee is $95,000, with an additional $500 for each hotel room exceeding 200.
If a prospective franchisee withdraws their application before The Standardx approves it, or if The Standardx does not approve the application for any reason, The Standardx will refund the application fee. However, The Standardx will deduct a $7,500 fee to cover the costs of evaluating the application. This means that the franchisee will not receive the entire application fee back.
Once The Standardx approves the franchise application, the application fee becomes non-refundable. This is the case even if the franchisee and The Standardx do not ultimately sign a Franchise Agreement. Additionally, if the franchisee and The Standardx agree to add guest rooms to the hotel before it opens, the franchisee must pay an additional non-refundable application fee of $500 for each additional room over 200.