Under what circumstances will The Standardx invoice the franchisee for the IT Project Management Services fee, including expenses?

According to The Standardx's 2025 Franchise Disclosure Document, the franchisee will be invoiced for the IT Project Management Services fee (which includes expenses) under specific circumstances. The Standardx will invoice the franchisee on or after completing an IT Project Management Service. Alternatively, The Standardx will invoice the franchisee if the franchisee terminates the Hotel development project or the IT Project Management Services for any reason. This invoicing occurs regardless of whether The Standardx has approved the Hotel for opening.

This means that a The Standardx franchisee can expect to receive an invoice for these services either upon completion of specific IT project milestones or if the project is terminated prematurely. The invoice will include not only the base fee of $58,300 for hotels with up to 250 guest rooms, but also any incurred expenses, such as transportation, lodging, and meals, which are estimated to range from $6,695 to $11,330, plus applicable taxes. For hotels larger than 250 guest rooms, the IT Project Management Services fee may be higher, but this would be agreed upon before signing the Franchise Agreement.

It is important for prospective franchisees to understand that this fee is non-refundable and will be invoiced even if the hotel does not ultimately open. This highlights the importance of carefully planning and executing the hotel development project to avoid potential termination and associated costs. Franchisees should also be aware of the potential for additional fees if the hotel has more than 250 guest rooms, and should clarify these costs with The Standardx before signing the Franchise Agreement.