Under what condition is the PIP fee due to The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| PIP fee | $0 to $10,000 | As agreed | For our preparation of the PIP if you are converting an existing structure to a Brand Hotel | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–40)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, a PIP (Property Improvement Plan) fee, ranging from $0 to $10,000, is payable to The Standardx if a franchisee is converting an existing structure into a The Standardx branded hotel. This fee covers The Standardx's preparation of the PIP, which outlines the specific upgrades and renovations required to meet The Standardx's brand standards.
For prospective franchisees considering converting an existing hotel, this fee is an important consideration in the initial investment. The PIP is a crucial step in the conversion process, as it details the work necessary to align the property with The Standardx's standards. The actual amount of the PIP fee can vary, but it is due when The Standardx prepares the PIP.
This fee is separate from the costs associated with actually implementing the PIP, which can be substantial. The FDD notes that franchisees converting existing hotels will likely incur significant costs to upgrade and renovate the hotel to meet The Standardx's standards. These costs depend on the hotel's existing condition and its furniture, fixtures, and equipment (FF&E).