What is the deadline to open a converted Caption By Hyatt hotel after signing the Franchise Agreement?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
s (including the premises' former use) and the construction schedule for the Hotel. You must open and begin operating the Hotel within 24 months after signing the Franchise Agreement for new Brand Hotels and 6 months after signing the Franchise Agreement for converted hotels (unless we agree to a longer period before we and you sign the Franchise Agreement). You also must meet various interim deadlines for the Hotel's development. If you do not meet these requirements, then you must pay the $10,000 extension fee to us and request an extension, which we may grant or deny at our option. If we approve the extension, we will set a new opening deadline, the extension fee is non-refundable, and we may (at our option) require you to modify any previously-approved detailed plans or the PIP (as applicable), to comply with the then current design, equipment and other aspects of the Hotel System. If you do not open
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, if you are converting an existing hotel to a Caption By Hyatt hotel, you generally must open the hotel within 6 months of signing the Franchise Agreement. However, Caption By Hyatt may agree to a longer period before you sign the Franchise Agreement.
If you fail to meet the 6-month deadline, you must pay Caption By Hyatt a $10,000 extension fee and request an extension. Caption By Hyatt has the option to either grant or deny this extension. If the extension is approved, Caption By Hyatt will set a new opening deadline. The $10,000 extension fee is non-refundable. Caption By Hyatt may also require you to modify any previously-approved detailed plans or the PIP to comply with the current design, equipment, and other aspects of the Caption By Hyatt system.
If you do not open the converted Caption By Hyatt hotel by the required completion date, Caption By Hyatt has the right to terminate the Franchise Agreement. This could result in significant financial losses, including the initial franchise fee and any investments made in the conversion process. Therefore, it is crucial to carefully assess the feasibility of completing the conversion within the initial 6-month timeframe or negotiate a longer period with Caption By Hyatt before signing the Franchise Agreement.