What commissions and fees is a Caption By Hyatt franchisee responsible for paying for reservations?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to pay on a timely basis, as and when due, all amounts owed to third parties (including Hyatt's Affiliates) arising out of the Hotel's operation (excluding only amounts owed which are reasonably in dispute), including: (a) applicable commissions to travel agents and third party reservation service charges and otherwise participate in any Hotel System travel agent commission payment program, as Hyatt periodically modifies it; (b) all commissions and fees for reservations Franchisee accepts through any sources (including the Internet), whether processed through Hyatt, the CRS, or any Provider's reservation system or billed directly to Franchisee; (c) all fees and assessments due for guest frequency programs and other marketing programs Hyatt periodically initiates that are attributable to the Hotel; and (d) all contributions for cooperative advertising programs in which Franchisee agrees to participate, as required in Section 5.5.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees are responsible for specific commissions and fees related to reservations. Caption By Hyatt franchisees must pay commissions to travel agents and third-party reservation service charges, adhering to any modifications Hyatt makes to the Hotel System's travel agent commission payment program. They are also responsible for all commissions and fees for reservations they accept through various sources, including the Internet, regardless of whether these reservations are processed through Hyatt, the CRS (Central Reservation System), or any Provider's reservation system, or billed directly to the franchisee.
This means that a Caption By Hyatt franchisee needs to budget for these variable costs, as they will fluctuate based on the volume and source of reservations. The franchisee must participate in any Hotel System travel agent commission payment program. The fees can impact the profitability of the hotel, especially if a significant portion of reservations comes through channels that require commission payments.
It is important to note that these fees and commission structures can be modified by Hyatt periodically, so franchisees need to stay updated with any changes to these programs. Understanding the different reservation channels and their associated costs is crucial for managing expenses and maximizing revenue for a Caption By Hyatt franchise. Franchisees should clarify with Hyatt the typical commission rates and fees associated with different reservation sources to accurately forecast these expenses.