What are the Caption By Hyatt franchisee's obligations regarding pre-opening purchases/leases (Item 9) and how do these relate to the estimated initial investment (Item 7)?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees have several obligations regarding pre-opening purchases and leases, as detailed in Item 9. These obligations are further specified in various sections of the Franchise Agreement, including 2.1, 2.2, 2.5, 2.7, 3.3, 4.3, 4.4, 5.1, Article 9, and Exhibit B-1. Item 9 indicates that these obligations are related to Items 5, 7, 8, and 11 of the disclosure document, which cover fees, estimated initial investment, restrictions on sources of products and services, and franchisee's obligations, respectively.

Specifically, Item 7, which outlines the estimated initial investment, includes several line items that relate directly to pre-opening purchases and leases. For instance, "Miscellaneous pre- opening costs" are estimated to range from $276,000 to $375,000. These costs are payable as incurred to suppliers, employees, the franchisee themselves, and Hyatt Corporation. Additionally, the "Additional funds - 3 months" category, estimated at $360,000 to $675,000, covers initial start-up expenses beyond those listed separately, including payroll costs for the hotel personnel.

These figures from Item 7 provide a prospective Caption By Hyatt franchisee with an overview of the capital needed to cover pre-opening phases. It is important to note that these are estimates, and actual costs may vary based on factors such as management skill, local economic conditions, and adherence to Hyatt's methods and procedures. Franchisees should carefully review these figures with a business advisor to prepare for the financial demands of launching a Caption By Hyatt franchise.