What factors does Caption By Hyatt consider when approving a site for a Hotel?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin operating the Hotel, we or another member of the Hyatt Group will:
- (1) Approve a site for the Hotel that meets our requirements. We do not provide any site selection assistance or specify an area within which you may look for a site. We do not own hotel premises and lease them to franchisees. In determining whether to approve a site, we consider, among other things, demographic characteristics, traffic patterns, parking, visibility, allowed signage, the predominant character of the neighborhood, competition from other lodging facilities in the area, the nature of other businesses near the site, and other commercial characteristics (including the purchase price or rental obligations and other lease terms) and the proposed site's size, appearance, and other physical characteristics. You may not develop a Brand Hotel at a site that we do not approve. We and you will not sign a Franchise Agreement until you have located and we have approved the Hotel's site. If you are converting an existing hotel from another brand to the Hotel System, we will inspect the hotel and prepare a PIP to provide details on our upgrade requirements. Each Comfort Letter Party must sign a comfort letter or similar agreement that we reasonably specify. (Sections 2.1 and 2.7 of Franchise Agreement)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, site approval is a crucial step before operating a hotel. Caption By Hyatt does not offer site selection assistance or lease premises to franchisees. However, they must approve the proposed site.
In evaluating a site for approval, Caption By Hyatt considers a range of factors. These include demographic characteristics, traffic patterns, parking availability, visibility, and allowed signage. The franchisor also assesses the neighborhood's character, competition from other lodging facilities, the nature of nearby businesses, and other commercial characteristics, including purchase price or rental obligations and other lease terms. The physical attributes of the proposed site, such as its size and appearance, are also taken into account.
Prospective franchisees should understand that Caption By Hyatt will not sign a Franchise Agreement until the hotel site has been located and approved. Furthermore, franchisees are prohibited from developing a Caption By Hyatt hotel at a site that has not received approval from the franchisor. If converting an existing hotel, Caption By Hyatt will inspect the hotel and prepare a Property Improvement Plan (PIP) detailing required upgrades.