What do the general and administrative costs for a Caption By Hyatt franchise include?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
General and administrative.
This item includes costs for permit fees, security deposits, utility deposits and startup requirements, impact fees (one-time charges that the government levies to offset service costs relating to the new development), tap fees (charges for connecting to existing water or sewer lines), and various business licenses.
Landlords sometimes pay some of the tap or impact fees, and the amount depends on municipal requirements and the final Hotel configuration.
This item also includes costs for insurance, legal and accounting expenses.
Source: Item 7 — Estimated Initial Investment (FDD pages 36–40)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the general and administrative buildout costs are estimated to range from $320,000 to $500,000. These costs encompass several components necessary for establishing and running the hotel.
Specifically, these costs include permit fees, security deposits, utility deposits, and startup requirements. Additionally, they cover impact fees, which are one-time charges levied by the government to offset service costs related to new developments, and tap fees, which are charges for connecting to existing water or sewer lines. The general and administrative costs also account for various business licenses that are required to operate the Caption By Hyatt franchise.
Furthermore, the general and administrative costs include expenses related to insurance coverage, as well as legal and accounting services. These are essential for ensuring the business operates within regulatory compliance and maintains sound financial practices. The FDD notes that landlords may sometimes cover some of the tap or impact fees, and the final amount can vary depending on municipal requirements and the hotel's final configuration.