For Caption By Hyatt, what determines the amortization period for 'other intangibles'?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ng supplies and equipment that primarily have a period of consumption of two years or less and food and beverage items at our owned and leased hotels, which are generally valued at the lower of cost (first-in, first-out) or net realizable value.
Property and Equipment and Definite-Lived Intangible Assets—Property and equipment is stated at cost, including interest incurred during development and construction periods, less accumulated depreciation.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the amortization period for 'other intangibles' for Caption By Hyatt is not explicitly detailed. However, Item 21 includes information on how Hyatt amortizes intangible assets in general. The document states that definite-lived intangible assets are recorded at acquisition date fair value, less accumulated amortization, with depreciation and amortization recognized over the estimated useful lives of the assets, primarily using the straight-line method.
While the FDD does not specify the exact method used to determine the amortization period for 'other intangibles,' it does provide context by mentioning amortization periods for other types of intangible assets. For instance, certain brand names are amortized over useful lives of 20 years, and other intangibles are amortized over useful lives of approximately 9 to 22 years, with a weighted-average useful life of approximately 17 years.
For a prospective Caption By Hyatt franchisee, this means that the specific amortization period for 'other intangibles' could vary. It is important to seek clarification from Caption By Hyatt regarding the specific types of assets included under 'other intangibles' and the factors that influence their estimated useful lives and amortization periods. Understanding these details is crucial for accurate financial forecasting and assessing the long-term value of the acquired assets.