When will Hyatt invoice the IT Project Management Services Fee for a Caption By Hyatt franchise?

According to the 2025 FDD, Hyatt will invoice the IT Project Management Services Fee to Caption By Hyatt franchisees under specific conditions. Hyatt will invoice the IT Project Management Services Fee (including expenses) no earlier than the completion of the IT Project Management Services. Alternatively, Hyatt may invoice the fee upon the franchisee's termination of the hotel development project or the IT Project Management Services, regardless of whether Hyatt has approved the hotel for opening.

This means that a Caption By Hyatt franchisee can expect to be invoiced for these services either upon their completion or if the project is terminated before completion. The fee covers Hyatt's costs for providing IT project management, including blueprint review, project management, planning, procurement assistance, vendor management, and various IT setup and consulting services. The franchisee is also responsible for reimbursing Hyatt's or its affiliate's reasonable expenses related to these services, such as transportation, lodging, and meals.

It is important to note that the IT Project Management Services Fee is non-refundable, so franchisees should carefully consider the scope and terms of these services. Additionally, the franchisee has responsibilities outlined in Exhibit E of the Franchise Agreement, and failure to perform these responsibilities may impact Hyatt's ability to deliver the services and could lead to adjustments in the scope of work, schedule, or fees. Franchisees should also be aware of the limited warranty Hyatt provides for these services, and the process for making a warranty claim.

Prospective Caption By Hyatt franchisees should review Exhibit B-1 of the Franchise Agreement to understand the specific IT Project Management Services Fee amount. They should also clarify with Hyatt the typical timeline for completion of these services and the potential circumstances under which the project might be terminated, leading to an earlier invoice. Understanding these details will help franchisees budget and plan for these costs effectively.