Is a Caption By Hyatt franchisee required to use Avendra's services?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Avendra, LLC ("Avendra") is a products and services sourcing company that offers volume contracts to its customer hotels on a variety of FF&E and other items used in hotel operations, including food and beverage equipment and supplies (such as branded and commodity programs), operating equipment and supplies (such as linens, pillows, terry, and light bulbs), and other products and services (such as printing and stationery, logoed items, chemicals, and pest elimination), at competitive prices that Avendra negotiates. You determine whether, and the extent to which, your Hotel will use Avendra's services. However, if you choose not to use Avendra, you might find it impracticable to purchase certain products for the Hotel (such as bathroom amenities made specifically for Hyatt Network Hotels) elsewhere.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees are not required to use Avendra's services. Avendra, LLC is a sourcing company that provides volume contracts to customer hotels for various items like FF&E, food and beverage equipment, operating equipment, and other products and services. The FDD states that franchisees determine whether, and to what extent, they will use Avendra's services.
However, the document also notes that if a Caption By Hyatt franchisee chooses not to use Avendra, it might be difficult to purchase certain products, such as bathroom amenities made specifically for Hyatt Network Hotels, elsewhere. This suggests that while using Avendra is optional, there could be practical advantages to doing so, particularly in maintaining brand consistency and accessing specific supplies.
In addition to Avendra, the FDD outlines other purchasing and service requirements. For example, franchisees must use the designated third-party provider for travel agent commission program services and the designated provider for quality assurance and inspection services. They must also use the Opera PMS system and sign a Hosting Services Agreement. While Avendra's services are not mandatory, Caption By Hyatt franchisees should carefully consider the potential benefits and challenges of sourcing products independently versus using the recommended supplier.