How are base management fees generally calculated for Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Base management fees are generally calculated as a percentage of gross revenues, and incentive management fees are generally computed based on a hotel profitability measure.
Included in the management fees are fees that we earn in exchange for providing the hotel access to Hyatt's intellectual property ("IP").
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, base management fees are generally calculated as a percentage of gross revenues. These fees, along with incentive management fees, are part of the gross fees that Caption By Hyatt collects. The incentive management fees are typically based on a hotel profitability measure.
These management fees also include compensation for providing the hotel access to Hyatt's intellectual property. The fees are typically due and payable on a monthly basis as services are provided.
For a prospective Caption By Hyatt franchisee, this means that a portion of their revenue will be allocated to base management fees, calculated as a percentage of their total gross revenue. Understanding this percentage is crucial for financial planning and assessing the profitability of the franchise. Additionally, franchisees should be aware that incentive fees may also apply, depending on the hotel's profitability.