When is the Alternative Design Review Fee required for a Caption By Hyatt franchise, and is it refundable?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Alternative Design Review Fee is required if a franchisee requests Hyatt's review of alternative plans, designs, or products that differ from those prescribed in Hyatt's prototype plans. This fee, the amount of which is detailed in Exhibit B-1, compensates Hyatt for the additional review services.

This fee is non-refundable, meaning that once paid, it will not be returned to the franchisee, regardless of whether the alternative plans are approved or the project proceeds. This is a standard practice in franchising, as design review requires the franchisor to expend resources evaluating the proposed modifications.

Prospective Caption By Hyatt franchisees should carefully consider the implications of this fee when planning their hotel's design and budget. It is important to adhere to Hyatt's prototype plans as closely as possible to avoid incurring this additional cost. Franchisees should also inquire about the specific amount of the Alternative Design Review Fee, as detailed in Exhibit B-1, to accurately factor it into their financial projections.