For a Caption By Hyatt franchise, how is the depreciation timeframe for leasehold improvements determined?

Based on the 2025 Franchise Disclosure Document, Caption By Hyatt's financial statements include leasehold improvements as part of their property and equipment. The gross value of leasehold improvements was $209 million in one period and $191 million in another. The FDD does not specify the exact depreciation method or timeframe used for these improvements.

However, the document does mention depreciation related to other assets. For example, certain brand names are amortized over useful lives of 20 years, and other intangible assets are amortized over approximately 9 to 22 years, with a weighted-average useful life of approximately 17 years. While these figures don't directly apply to leasehold improvements, they provide insight into how Caption By Hyatt handles depreciation for different types of assets.

Since the FDD does not provide specific details on the depreciation timeframe for leasehold improvements, it is important for a prospective Caption By Hyatt franchisee to seek clarification from the franchisor. Understanding the depreciation schedule is crucial for financial planning and accurately projecting the profitability of the franchise. Franchisees should inquire about the specific method used (e.g., straight-line, accelerated) and the factors that influence the depreciation timeframe, such as the lease term and the expected useful life of the improvements.