For a Caption By Hyatt franchise, what are the payment dates for the Design Services Review Fee?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Services Fee is non-refundable. Franchisee shall reimburse Hyatt's or its Affiliate's reasonable expenses in connection with rendering the IT Project Management Services, including any necessary transportation, lodging and meals, plus applicable taxes thereon. The IT Project Management Services Fee (including expenses) will be invoiced by Hyatt no earlier than: (i) Hyatt's completion of the IT Project Management Services or (ii) upon Franchisee's termination of the Hotel development project or the IT Project Management Services, for any reason, in either event regardless of whether Hyatt has approved the Hotel for opening.
- (c) If Franchisee is constructing a new Hotel, adapting a non-hotel space for use as a Hotel, or conducting a significant renovation of an existing hotel in connection with conversion to a Brand Hotel, Franchisee shall pay Hyatt a design services review fee (the "Design Services Review Fee") as set forth in Exhibit B-1. In addition, if Franchisee requests Hyatt's review of alternative plans, design or products other than those prescribed by Hyatt's prototype plans, Franchisee must pay Hyatt an alternative design review fee (the "Alternative Design Review Fee") as set forth in Exhibit B-1. The Design Services Review Fee and the Alternative Design Review Fee are non-refundable.
- 6.2 Monthly Fees to Hyatt.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a franchisee must pay a Design Services Review Fee if constructing a new hotel, adapting a non-hotel space for use as a hotel, or conducting a significant renovation of an existing hotel in connection with conversion to a Brand Hotel. Additionally, an Alternative Design Review Fee is required if the franchisee requests Hyatt's review of alternative plans, designs, or products that differ from Hyatt's prototype plans. The FDD does not specify the exact payment dates for these fees.
However, the document does state that the Design Services Review Fee and the Alternative Design Review Fee are non-refundable. This implies that the fee is likely due before the services are rendered, as is common practice to ensure commitment and cover initial costs.
To fully understand the payment schedule for the Design Services Review Fee and the Alternative Design Review Fee, a prospective Caption By Hyatt franchisee should inquire directly with the franchisor about when these fees are assessed and the specific payment terms. This will help in planning the project budget and cash flow effectively.
It is also important to note that the franchise agreement outlines late fee and interest policies. A late fee of $225 will be applied for each payment not made by the original due date, and amounts overdue by more than seven days will accrue interest at 1.5% per month or the highest legally allowed commercial contract interest rate.