When are base management and hotel services fees due and payable to Caption By Hyatt?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, base management and hotel services fees are generally due and payable on a monthly basis as services are provided. These fees are a form of variable consideration that Caption By Hyatt receives in exchange for providing management and hotel services. These services are considered a single performance obligation that qualifies as a series.

Incentive fees, which are another component of the management or hotel services fees, are typically dependent on the achievement of certain profitability targets. The timing for when incentive fees are due and payable is based on the terms outlined in the specific agreement. However, at a minimum, Caption By Hyatt bills and collects these incentive fees annually.

For a prospective Caption By Hyatt franchisee, this means that they can expect to pay base management fees monthly as services are rendered. The payment schedule for incentive fees will depend on the specific terms negotiated in their franchise agreement, but they should be prepared to pay these at least once per year. Understanding the specific terms for both base and incentive fees is crucial for managing cash flow and financial planning.