For which hotels is Caption By Hyatt considered the principal for redemption of promotional awards?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent for managed and franchised hotels, and we are the principal with respect to owned and leased hotels.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Caption By Hyatt acts as the principal for the redemption of promotional awards specifically at hotels that are owned and leased. This means that for these particular hotels, Caption By Hyatt is directly responsible for fulfilling the award night obligations.
For managed and franchised hotels, Caption By Hyatt acts as an agent in arranging for the redemption of promotional awards. In this agent role, Caption By Hyatt arranges for the award redemptions but does not directly fulfill the award night obligation. Instead, the responsibility for fulfilling the award night falls on the managed or franchised hotel itself.
For a prospective Caption By Hyatt franchisee, this distinction is important because it clarifies where the financial responsibility lies for fulfilling promotional awards. If a franchisee operates a managed or franchised hotel, they will be responsible for covering the costs associated with award night redemptions. Conversely, at owned or leased hotels, Caption By Hyatt bears this responsibility directly.