Who is responsible for paying the costs associated with The Standardx Hotel's management personnel's provisional area occupation, such as energy consumption and security attendance, prior to the formal opening?

According to The Standardx's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with the hotel management personnel's provisional occupation of the area before the hotel's formal opening. These costs include energy consumption, which covers the testing and commissioning of fire and life safety and MEP (mechanical, electrical, and plumbing) systems, as well as security attendance at the project site.

This means that as a The Standardx franchisee, you will need to budget for these operational expenses during the pre-opening phase. These costs can potentially be significant, especially considering energy consumption for testing systems and the need for security personnel. It is important to factor these expenses into your initial investment and operating capital calculations.

This requirement is fairly standard in the franchise industry, as the franchisee typically bears the costs of preparing the location for opening. However, the specific costs can vary widely depending on the size of the hotel, the complexity of its systems, and local energy rates. Therefore, prospective franchisees should carefully estimate these pre-opening expenses and discuss them with existing The Standardx franchisees to gain a more accurate understanding of the potential financial burden.