exception

For Caption By Hyatt, what is excluded from the Way Commission assessment?

Caption_By_Hyatt Franchise · 2025 FDD

Answer from 2025 FDD Document

  • There will be no Way Commission assessed on: (a) non-revenue generating activities included in the ancillary services and products; (b) any ancillary services and products purchased directly at the Property (e.g., through concierge or front desk colleagues); (c) non-publicly listed b2b or group sales ancillary services and products even if booked through the Way integrated channels; or (d) Owner/member only ancillary services and products (and only where member ID functionality is used) even if booked through the Way integrated channels.

Source: Item 23 — Receipts (FDD pages 85–349)

What This Means (2025 FDD)

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Way Commission, which is a commission on ancillary services and products booked through Way's integrated channels, has certain exclusions. The Way Commission will not be assessed on non-revenue generating activities related to ancillary services and products. It also excludes ancillary services and products purchased directly at the property, such as through concierge or front desk staff.

Additionally, the Way Commission excludes non-publicly listed business-to-business (b2b) or group sales ancillary services and products, even if these are booked through Way's integrated channels. Owner/member-only ancillary services and products are also excluded from the Way Commission, but only when member ID functionality is used, even if booked through Way's integrated channels.

For a prospective Caption By Hyatt franchisee, this means that certain revenue streams from ancillary services and products will not be subject to the 5% Way Commission. This could impact the overall revenue and profitability calculations for the franchise, as these exclusions effectively reduce the commission expenses. Franchisees should ensure they understand which specific activities and sales qualify for these exclusions to accurately forecast their financial performance.

It is important for franchisees to note the conditions attached to these exclusions, such as the requirement for member ID functionality for owner/member-only services. Franchisees should also stay updated on any changes to these exclusions, as they could affect the commission expenses over time. Understanding these exclusions can help franchisees optimize their ancillary service offerings and maximize their revenue potential while minimizing commission costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.