Is there a fee associated with Hyatt's operator approval for The Standardx?

pproves 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.

• (b) Franchisee shall pay Hyatt the "IT Project Management Services Fee" set forth in Exhibit B-1, plus any applicable taxes thereon. The IT Project Management Services Fee is non-refundable. Franchisee shall reimburse Hyatt's or its Affiliate's reasonable expenses in connection with rendering the IT Project Management Services, including any necessary transportation, lodging and meals, plus applicable taxes thereon. The IT Project Management Services Fee (including expenses) will be invoiced by Hyatt no earlier than: (i) Hyatt's completion of the IT Project Management Services or (ii) upon Franchisee's termination of the Hotel development project or the IT Project Management

Services, for any reason, in either event regardless of whether Hyatt has approved the Hotel for opening.

• (c) If Franchisee is constructing a new Hotel, adapting a non-hotel space for use as a Hotel, or conducting a significant renovation of an existing hotel in connection with conversion to a Brand Hotel, Franchisee shall pay Hyatt a design services review fee (the "Design Services Review Fee") as set forth in Exhibit B-1. In addition, if Franchisee requests Hyatt's review of alternative plans, design or products other than those prescribed by Hyatt's prototype plans, Franchisee must pay Hyatt an alternative design review fee (the "Alternative Design Review Fee") as set forth in Exhibit B-1. The Design Services Review Fee and the Alternative Design Review Fee are non-refundable.
• 6.2 Monthly Fees to Hyatt. On or before the tenth (10th) day of each month or such later day of the month that Hyatt periodically specifies, Franchisee shall pay Hyatt:
  • (a) a "Royalty Fee" equal to the amount set forth in Exhibit B-1;
  • (b) the System Services Charges for the previous month. Franchisee acknowledges that System Services Charges will include an allocable proportion of certain System Services Costs incurred during the period before the Hotel opens in accordance with this Agreement. System Services Charges shall be determined on the same basis as such amounts are determined for other Participating Hotels. Any allocation of shared costs that the Hyatt Group makes in good faith and with the intention of fairly allocating such costs to System Services shall be binding on the parties hereto. System Services Costs shall include the actual costs incurred by the Hyatt Group and shall not be subject to any mark-up, premium or profit on any Mandatory Services, but may include a profit or markup component on Non-Mandatory Services as described above or as determined by the Hyatt Group. The Hyatt Group may in its reasonable judgment periodically change its method of allocation of the System Services Costs among Participating Hotels, and the categories of Brand Hotels and/or other Hyatt Network Hotels that are classified as Participating Hotels, provided that such method of allocation and categories of Participating Hotels shall at all times be determined on a reasonable, equitable and nondiscriminatory basis; and
  • (c) all fees and other amounts that Hyatt (or its Affiliates) then has paid or has agreed to pay on Franchisee's behalf to any Providers. If any Provider assesses a single or group fee or other charge that covers all or a group of Brand Hotels or other Hyatt Network Hotels to which that Provider provides products or services, Franchisee agrees that Hyatt's allocation of that fee or other charge among the Hotel and other participating hotels is final. The Providers may periodically increase the fees and other charges they impose. At Hyatt's option, Franchisee must begin paying these fees and other charges directly to the applicable Provider(s).
• 6.3 Payments to Other Parties.

Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)