How does Caption By Hyatt determine the fees that the Owner agrees to pay Hyatt for services?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the Services, Owner agrees to pay Hyatt the fees at the rates set forth in the applicable Schedule(s) attached to this Agreement, or the then-current Updated Services Schedule, as applicable (“Fees”). Hyatt hereby discloses that fees set forth in any Schedule or an Updated Services Schedule may include a profit component, not to exceed a competitive amount. All amounts invoiced by Hyatt or its affiliates pursuant to this Agreement shall be payable on a "net" basis. Without limiting the
generality of the foregoing, if under applicable laws, Owner is required to withhold or Hyatt is required to pay any taxes and/or levies assessed by any third party on Hyatt or any of its affiliates as a recipient, including, but not limited to, sales taxes and withholding tax, and also any similar taxes that can replace or append the existing taxes, the amount payable to Hyatt and/or its affiliates by Owner shall be increased in such a manner that the net amount received after withholding or payment of all such taxes or levies shall be equal to the amount which Hyatt and/or its affiliates would have otherwise been entitled to invoice under the terms of this Agreement in the absence of any such taxes, levies or deductions.
6. Payments and Terms.
- a. Payment. In consideration of the Services to be provided by Hyatt to Owner under this Agreement, Owner shall pay Hyatt the Fees in accordance with the applicable Order. Unless otherwise expressly set forth in the applicable Order, all Fees will be invoiced and payable in U.S. Dollars. If Owner fails to make any payment when due then, in addition to all other remedies that may be available, Hyatt may charge interest on the past due amount at the rate of 1.5% per month calculated daily and compounded monthly or, if lower, the highest rate permitted under applicable law.
- b. Fee Guidance. The fee for the Services is intended to cover the costs for Hyatt to provide the Services. The fee for such Services will be calculated in the same manner as the fee charged to hotels managed by a Hyatt Affiliate that are receiving similar services.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the fees for services are determined by the rates set forth in the applicable Schedule(s) attached to the agreement or the then-current Updated Services Schedule. These fees may include a profit component for Hyatt, but it will not exceed a competitive amount. The fees for services are intended to cover the costs for Hyatt to provide the services and will be calculated in the same manner as the fee charged to hotels managed by a Hyatt Affiliate that are receiving similar services.
Caption By Hyatt may update the Services and related prices attached to any Schedule at any time by providing the Property an updated applicable attachment to such Schedule, which may be provided electronically via email or by posting to any intranet for Hyatt branded or affiliated hotels. The owner is responsible for the fees set forth on Hyatt's then-current applicable Schedules as of the Service Effective Date, and any subsequently updated Fees as listed on an Updated Services Schedule.
In addition to the fees, Caption By Hyatt reserves the right to charge the Owner for reimbursement of expenses reasonably incurred while rendering the services, including transportation, printing, photocopying, postage, and delivery services. If the Owner fails to make any payment when due, Hyatt may charge interest on the past due amount at a rate of 1.5% per month, calculated daily and compounded monthly, or the highest rate permitted under applicable law, if lower. Hyatt also reserves the right to suspend Services under any applicable Schedule if the Owner fails to pay or perform any of its obligations under the agreement or any applicable Schedule.