What must a Caption By Hyatt franchisee submit to Hyatt to request an extension of the Opening Deadline?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may request an extension of the Opening Deadline by submitting to Hyatt, at least three (3) months before the Opening Deadline, a written request for extension and an extension fee in the amount set forth in Exhibit B-1.
If Hyatt approves the extension, Hyatt will set a new Opening Deadline, the extension fee will be non-refundable, and Hyatt may (at its option) require Franchisee to modify any previously-approved plans, construction documents, or the PIP (as applicable), to comply with the then current design, equipment and other aspects of the Hotel System.
If Hyatt denies the extension, Hyatt will refund the extension fee.
Franchisee shall indemnify Hyatt for all costs and expenses that Hyatt incurs directly or indirectly as a result of Franchisee's failure to open the Hotel on or before the anticipated Opening Date specified by Franchisee or the Opening Deadline, whichever is earlier, including any amounts that Hyatt pays with respect to customers whose reservations at the Hotel are cancelled.
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 submit a written request for an extension of the Opening Deadline to Hyatt at least three months before the original deadline. This request must also include an extension fee, the amount of which is specified in Exhibit B-1 of the Franchise Agreement.
If Caption By Hyatt approves the extension, they will set a new Opening Deadline. The extension fee is non-refundable, regardless of the ultimate outcome. Additionally, Hyatt has the option to require the franchisee to modify any previously approved plans, construction documents, or the Property Improvement Plan (PIP) to comply with the current standards of the Hotel System.
If Caption By Hyatt denies the extension request, the extension fee will be refunded to the franchisee. It is important to note that the franchisee is responsible for indemnifying Hyatt for all costs and expenses Hyatt incurs due to the franchisee's failure to open the hotel by the agreed-upon date, including any amounts Hyatt pays for cancelled customer reservations. This highlights the importance of carefully planning and managing the pre-opening phase to avoid potential financial liabilities.