Is a Caption By Hyatt franchisee prohibited from changing their bank without notifying Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Electronic Payments. You must make all payments for Royalty Fees, System Services Charges, and other amounts due to us or any member of the Hyatt Group under the Franchise Agreement or relating to the Hotel by electronic funds transfer ("EFT") in compliance with System Standards. We periodically may change the procedure for payments. You must make funds available in your account to cover payments when due. You may not change your bank, financial institution, or account used in the operation of the Hotel without first telling us.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Caption By Hyatt franchisees must notify Hyatt before changing the bank or financial institution used for the hotel's operation. This requirement is tied to the electronic payment system used for fees.
Caption By Hyatt requires franchisees to make all payments for Royalty Fees, System Services Charges, and other amounts due via electronic funds transfer (EFT). This ensures timely and consistent payments to Caption By Hyatt.
The stipulation that franchisees cannot change their bank without first informing Caption By Hyatt allows the company to maintain uninterrupted electronic payment processing. This is a fairly standard practice in franchising, as it allows the franchisor to ensure a consistent revenue stream and avoid potential payment issues. Franchisees should ensure they comply with this requirement to avoid any penalties or disruptions to their franchise agreement.