What expenses are included in the additional funds (3 months) estimate for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional funds 3 months.
This item estimates your initial start-up expenses (other than the items identified separately in the table).
These expenses include payroll costs for the Hotel's personnel but not any management fees or similar draw.
These figures are estimates, and we cannot guarantee that you will not have additional expenses starting the business.
Your costs depend on how closely you follow our methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for the Hotel's services; the prevailing wage rate; competition; and the sales level reached during the initial period.
Source: Item 7 — Estimated Initial Investment (FDD pages 36–40)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the additional funds (3 months) estimate covers initial start-up expenses not specifically listed elsewhere in the initial investment table. These expenses include payroll costs for the hotel's personnel, but do not include management fees or similar draws. The estimated range for these additional funds is $360,000 to $675,000. These funds are typically paid as incurred to suppliers, employees, Caption By Hyatt, or Hyatt Corporation.
Caption By Hyatt emphasizes that these figures are estimates and that actual expenses may vary. The FDD notes that a franchisee's costs will depend on factors such as adherence to Caption By Hyatt's methods and procedures, management skills, local economic conditions, the local market for the hotel's services, prevailing wage rates, competition, and the sales level reached during the initial period.
Prospective franchisees should carefully review these figures with a business advisor to assess their potential financial obligations. It is important to note that this estimate excludes real estate costs and does not include any finance charges, interest, or debt service obligations. Franchisees should also be aware that, with the exception of a portion of the application fee, no amounts in the initial investment chart are refundable.