To whom is the comfort letter fee paid for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| . Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| New development application fee or change of ownership application fee(1) | $95,000 to $150,000 | Lump sum | Upon signing franchise application | Us |
| Comfort letter fee(s) | $0 to $2,500 | Lump sum | When your lender(s) sign a comfort letter with us | Us |
Source: Item 7 — Estimated Initial Investment (FDD pages 36–40)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the comfort letter fee is paid to the franchisor, referred to as "Us" in the document. This fee, which ranges from $0 to $2,500, is a lump sum payment.
The comfort letter fee is due when the franchisee's lender(s) sign a comfort letter with Caption By Hyatt. A comfort letter is typically requested by a lender to gain assurance about the financial stability and commitment of the franchisor to the franchisee's project. This fee likely covers Caption By Hyatt's administrative costs and legal review associated with providing the comfort letter.
Prospective Caption By Hyatt franchisees should budget for this potential expense as part of their initial investment. It is important to clarify with the franchisor under what specific circumstances the fee will be charged, as it can vary from $0 to $2,500. Understanding the requirements for the comfort letter and the franchisor's process can help in securing financing and managing initial costs effectively.