What is the definition of 'EFT' as it relates to payments for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
es 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.
- 6.4 Electronic Funds Transfer. Franchisee must make all payments for Royalty Fees, System Services Charges and other amounts due to Hyatt or any member of the Hyatt Group under this Agreement or otherwise in connection with the Hotel by electronic funds transfer ("EFT") in compliance with System Standards.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, EFT, or electronic funds transfer, is the required method for franchisees to make payments to Hyatt. Specifically, all payments for Royalty Fees, System Services Charges, and any other amounts due to Hyatt or any member of the Hyatt Group must be made via EFT. This requirement is in place to ensure timely and efficient transfer of funds.
Caption By Hyatt may periodically modify the specific procedures for these payments, and franchisees are obligated to comply with these changes. Franchisees must ensure that sufficient funds are available in their designated account to cover the payments when they are due. Furthermore, franchisees are not allowed to change the bank, financial institution, or account used for these transactions without first notifying Hyatt.
Failure to comply with these payment terms can result in penalties. Caption By Hyatt charges a late fee of $225 for each payment not made on time or for any authorized automatic debit that is not honored by the franchisee's financial institution. This fee is intended to cover the increased administrative and management costs incurred due to late payments. Additionally, any amounts owed to Hyatt that are more than seven days late will accrue interest at a rate of 1.5% per month, or the highest commercial contract interest rate allowed by law, whichever is less.