When must a Caption By Hyatt franchisee open a Pre-Opening Sales Office at the Site?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Promptly after the Technology System is installed at the Hotel, at Hyatt's option, Franchisee must open and begin operating a Pre-Opening Sales Office at the Site, staffed by the Hotel's director of sales.
"Pre-Opening Sales Office" means a temporary or permanent sales office at the Site to solicit and accept reservations before the Opening Date for stays after the Opening Date.
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 open a Pre-Opening Sales Office at the Site promptly after the Technology System is installed at the hotel, but only if Hyatt elects that the franchisee do so. The Pre-Opening Sales Office must be staffed by the Hotel's director of sales. The FDD defines a "Pre-Opening Sales Office" as a temporary or permanent sales office at the Site to solicit and accept reservations before the Opening Date for stays after the Opening Date.
This means that the opening of a Pre-Opening Sales Office is not always required, but is dependent on Hyatt's discretion. If Hyatt decides it is necessary, the franchisee must act promptly after the Technology System is installed. This office is intended to generate reservations and build anticipation before the hotel officially opens.
For a prospective Caption By Hyatt franchisee, this implies that they need to be prepared to set up and staff a sales office on short notice if Hyatt deems it necessary. This could involve additional costs for setting up the office space and allocating personnel. It is important for franchisees to factor in this potential requirement when planning their pre-opening activities and budget. Franchisees should communicate with Hyatt to understand the likelihood of needing a Pre-Opening Sales Office and to align on the timeline for technology installation to ensure preparedness.