Under what circumstances might The Standardx waive the Extension Fee?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Extension Fee
If you are constructing a new Hotel, you must start and complete construction and open the Hotel, according to the timetables in the Franchise Agreement. If you are converting an existing hotel to a Brand Hotel, you must start renovation and open the Hotel under the Hotel System according to the timetables in the Franchise Agreement. We may terminate the Franchise Agreement if you fail to meet the required timetable. You may request one or more extensions of time by giving us, at least 3 months before the opening deadline, a written extension request and a $10,000 "Extension Fee." We will inform you of the length of the extension if and when we grant it. We will refund the Extension Fee only if we deny the extension. We may waive this fee under some
Source: Item 5 — INITIAL FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, an Extension Fee of $10,000 is typically required when a franchisee requests an extension to the construction or renovation timetable outlined in the Franchise Agreement. This fee applies both to new hotel constructions and conversions of existing hotels to The Standardx brand. The franchisee must request the extension in writing at least three months before the opening deadline.
The Standardx will refund the Extension Fee if the extension request is denied. However, the document also states that The Standardx "may waive this fee under some circumstances." The FDD does not elaborate on what these circumstances might be.
A prospective franchisee should directly ask The Standardx to clarify the specific conditions under which the Extension Fee could be waived. Understanding these conditions is crucial for financial planning and managing potential delays in the hotel development or renovation process.