How are the billing and payment terms for the fees determined in the Caption By Hyatt agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- m. "Order" means an order executed by Hyatt and Owner during the term of this Agreement, setting forth the billing and payment terms for the Fees.
6. Payments and Terms.
- a. Payment. In consideration of the Services to be provided by Hyatt to Owner under this Agreement, Owner shall pay Hyatt the Fees in accordance with the applicable Order. Unless otherwise expressly set forth in the applicable Order, all Fees will be invoiced and payable in U.S. Dollars. If Owner fails to make any payment when due then, in addition to all other remedies that may be available, Hyatt may charge interest on the past due amount at the rate of 1.5% per month calculated daily and compounded monthly or, if lower, the highest rate permitted under applicable law.
- b. Fee Guidance. The fee for the Services is intended to cover the costs for Hyatt to provide the Services. The fee for such Services will be calculated in the same manner as the fee charged to hotels managed by a Hyatt Affiliate that are receiving similar services.
Upon termination of this Agreement, Owner shall remit to Hyatt payment for Services rendered through the effective date of termination pursuant to any applicable Schedule.
Owner agrees to be responsible for the Fees set forth on Hyatt's then-current applicable Schedules as of the Service Effective Date, and any subsequently updated Fees as listed on an Updated Services Schedule.
Hyatt reserves the right to charge Owner for reimbursement of expenses reasonably incurred by Hyatt in rendering the Services, including for transportation and related expenses, printing, photocopying, postage, and delivery services.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the billing and payment terms for fees are determined by an order executed by both Caption By Hyatt and the owner. This order outlines the specific terms for these fees. Unless stated otherwise in the order, all fees are invoiced and payable in U.S. dollars.
If an owner fails to make payments on time, Caption By Hyatt may charge interest on the past due amount. This interest is calculated at a rate of 1.5% per month, compounded monthly, or the highest rate permitted by applicable law, whichever is lower. Additionally, Caption By Hyatt may suspend services if the owner fails to pay or fulfill their obligations under the agreement or any related schedule.
The fees for services are designed to cover Caption By Hyatt's costs of providing those services and are calculated in the same manner as fees charged to hotels managed by a Hyatt affiliate for similar services. Hyatt may update services and related prices by providing an updated services schedule, typically updated annually, to the property 90 days in advance. The owner is responsible for the fees set forth on Hyatt's then-current applicable schedules as of the service effective date, and any subsequently updated fees as listed on an updated services schedule.
If the agreement is terminated, the owner must remit payment to Caption By Hyatt for services rendered up to the termination date, as per the applicable schedule. Hyatt also reserves the right to charge the owner for reimbursement of expenses reasonably incurred while rendering services, including transportation, printing, photocopying, postage, and delivery services.