When is the Commercial Services Fee due for a Caption By Hyatt franchise, and what is it based on?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Commercial Services Fee | Currently 3.5% of Gross Rooms Revenue, but could increase if costs increase | Payment Day, based on Gross Rooms Revenue during previous month | See Note 7 |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Commercial Services Fee is due on Payment Day, and it is based on the Gross Rooms Revenue from the previous month. The current fee is 3.5% of Gross Rooms Revenue, but the FDD indicates that this percentage could increase if Caption By Hyatt's costs increase.
The Commercial Services Fee covers various commercial services that the Hyatt Group provides to the hotel. These services include brand-wide marketing, advertising, public relations, guest satisfaction program management, centralized reservation services, revenue management technology, group sales support, sales and catering system services, property management system services, digital product technology and infrastructure, and other technology services.
As a prospective Caption By Hyatt franchisee, it's important to understand that the Hyatt Group may periodically change the benefits and services included in the Commercial Services, as well as the associated charges and fees. They may also adopt different methodologies for these fees, including fixed charges, percentage charges, or direct billback. The Hyatt Group has the discretion to allocate the Commercial Services Fee as they see fit and may spend more or less than the total contributions in any given year, but they will use all collected fees for Commercial Services.