What is the customer benefit from the services provided by Caption By Hyatt every day?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
We satisfy the following performance obligations over time: access to Hyatt's symbolic IP, services provided under management and hotel services agreements, administration of the loyalty program, and the license of our brand name through our co-branded credit card agreements. Each of these performance obligations is considered a sales-based royalty or a series of distinct services, and although the activities to fulfill each of these promises may vary from day to day, the nature of each promise is the same and the customer benefits from the services every day.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, customers benefit daily from the services provided. The brand provides access to its symbolic intellectual property, services under management and hotel service agreements, loyalty program administration, and brand name licensing through co-branded credit card agreements. These services are considered sales-based royalties or a series of distinct services, ensuring consistent value for the customer.
Caption By Hyatt recognizes revenue based on the value transferred to the customer, using observable outputs related to each performance obligation. This includes revenues and operating profits earned by the hotels, revenues and operating profits for services provided under management and hotel services agreements, award night or point redemptions for the loyalty program, and cardholder spending for the brand name license through co-branded credit card programs.
Caption By Hyatt also administers a loyalty program where members earn points based on spending at properties, through strategic alliances, or with co-branded credit cards. These points can be redeemed for stays at participating properties or other goods and services. The loyalty program involves marketing, managing the program, and arranging for award redemptions, with costs charged to properties through assessment fees. This ensures that customers receive ongoing benefits and value from their engagement with the brand.