Is the application fee for a Caption By Hyatt franchise refundable?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Before signing the Franchise Agreement, and while you apply for franchise rights, you must submit a franchise application (Exhibit B) through our online application portal and pay the application fee. We will refund the application fee less a fee to cover our costs if you withdraw your franchise application before we approve it or if we do not approve it. During your evaluation process, and before receiving any Confidential Information, you must sign the Confidentiality Agreement (Exhibit F) (the "Confidentiality Agreement"). Because we may engage in negotiations with you and other franchisees, you may sign a Franchise Agreement with us that differs significantly from the agreements that other franchisees sign for Brand Hotels.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–14)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the application fee is potentially refundable. Before signing the Franchise Agreement, prospective franchisees must submit a franchise application and pay the application fee through an online portal.
The FDD states that Caption By Hyatt will refund the application fee, less a fee to cover their costs, if the applicant withdraws their franchise application before it is approved or if Caption By Hyatt does not approve the application. This means that while the full application fee may not be returned, a portion of it could be refunded depending on the circumstances of the application's withdrawal or denial.
This policy provides some financial protection to the applicant, as they may recover a portion of the fee if the franchise deal does not proceed. However, the franchisee will bear the cost of Caption By Hyatt's expenses for processing the application. It is important for potential franchisees to understand what costs Caption By Hyatt will deduct from the refund, and this should be clarified before submitting the application.