When is the remaining portion of the additional Application Fee due for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) The initial Application Fee was fully earned by Hyatt and non-refundable upon Hyatt's approval of Franchisee's franchise application before Hyatt and Franchisee signed this Agreement. If Hyatt and Franchisee agree to add guest rooms to the Hotel above the number of rooms stated in Exhibit B-3 before the Hotel opens, then Franchisee must pay Hyatt, when Hyatt approves the additional guest rooms, an additional Application Fee in an amount equal to the amount set forth in Exhibit B-1. After the Hotel opens, if Franchisee wants to add any guest rooms to the Hotel, Franchisee must pay Hyatt's then current PIP fee (currently the amount set forth in Exhibit B-1 when Franchisee requests Hyatt's approval of Franchisee's plans. This PIP fee is non-refundable. Hyatt will apply this PIP fee toward the additional Application Fee of the amount set forth in Exhibit B-1 if Hyatt approves Franchisee's plans. If the PIP fee exceeds the additional Application Fee, Hyatt may keep the excess. The remaining portion of the additional Application Fee is due, fully earned by Hyatt, and non-refundable on the date Hyatt approves Franchisee's plans to develop the additional guest rooms.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the remaining portion of the additional Application Fee is due when Hyatt approves the franchisee's plans to develop additional guest rooms. This fee is considered fully earned by Hyatt and is non-refundable at that time.
This condition is triggered if a franchisee seeks to expand the number of guest rooms beyond what was initially agreed upon in Exhibit B-3 before the hotel opens. In such cases, the franchisee must pay an additional Application Fee, calculated as specified in Exhibit B-1, upon Hyatt's approval of the added rooms.
Furthermore, if the franchisee wishes to add guest rooms after the hotel is already open, they must pay Hyatt's then-current PIP (Property Improvement Plan) fee, which is currently $10,000 as outlined in Exhibit B-1. This PIP fee is non-refundable but will be credited towards the additional Application Fee if Hyatt approves the expansion plans. If the PIP fee exceeds the additional Application Fee, Hyatt retains the excess amount.