What is the Commercial Services Fee for a Caption By Hyatt franchise, and when is it due?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
time of termination.
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- Commercial Services Fee. The "Commercial Services Fee" currently covers the costs for the following commercial services that the Hyatt Group makes available to the Hotel and other Participating Hotels (the "Commercial Services"):
- (a) brand-wide marketing, advertising, public relations, and guest satisfaction program management and research for the Hotel;
- (b) base Global Property and Guest Services which provide, among other things, centralized reservation services (including the services and charges for the base reservation fee, which applies regardless of channel, and certain additional reservation fees based on channels) and care professionals supporting the business by enhancing the guest experience;
- (c) revenue management technology, including the Hyatt Group's proprietary revenue management software, and advisory and support services, such as pricing strategy across channels and on-going training, support, and tools for pricing and inventory applications;
- (d) group sales support for large accounts, including lead generation from the Hyatt Group's global and regional sales offices, account management, and account development, and transient and luxury sales promotion services (including Consortia);
- (e) sales and catering system services, including account management, booking pipeline management, and analysis through our designated sales software systems, which are required in order to receive leads from the Hyatt Group's sales sources;
- (f) property management system services, including Opera PMS, web-in/web-out and hosting, and interface file, maintenance, and support;
- (g) the Hyatt Group's digital product technology and infrastructure including Hyatt.com and the mobile app; and
- (h) other technology services, including e-learning, e-mail, HyattConnect, SharePoint, identify access management, ServiceNow, in-room technology and network access.
The Hyatt Group may periodically change the benefits and services currently included as Commercial Services and the charges and fees for those benefits and services. The Hyatt Group may adopt other methodologies for fees and charges related to chain-wide programs to Participating Hotels, including segregation by brand, geographic location, or other criteria that the Hyatt Group deems appropriate in its discretion. The Hyatt Group may periodically allocate the Commercial Services Fee as a fixed charge, percentage charge, direct billback, or any other combination of multiple allocation methodologies. The Hyatt Group may spend in any year more or less than the total Commercial Services Fee contributions in that year, but will use all Commercial Services Fees collected for Commercial Services.
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- Digital Acquisition Fee.
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 covers costs for commercial services that the Hyatt Group provides to the hotel and other participating hotels. 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.
The Hyatt Group may periodically change the benefits and services included as Commercial Services, as well as the charges and fees for those benefits and services. They may also adopt other methodologies for fees and charges related to chain-wide programs, including segregation by brand, geographic location, or other criteria. The Commercial Services Fee may be allocated as a fixed charge, percentage charge, direct billback, or any combination of multiple allocation methodologies. The Hyatt Group may spend more or less than the total Commercial Services Fee contributions in any year, but will use all Commercial Services Fees collected for Commercial Services.
The FDD does not specify the exact amount or percentage charged for the Commercial Services Fee, nor does it detail the specific due dates or payment schedule. As the Commercial Services Fee can be calculated in a variety of ways, prospective franchisees should speak with the franchisor directly to understand how the fee will be calculated for their specific Caption By Hyatt location. Understanding the calculation method, amount, and payment schedule of the Commercial Services Fee is essential for budgeting and financial planning.