For Caption By Hyatt, what is the impact of a suspension of operations on the calculation of 'Average Monthly Revenue'?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, a suspension of hotel operations can impact the calculation of 'Average Monthly Revenues.' If the hotel's operations are disrupted due to events like Force Majeure, casualty, suspension of operations (whether or not consented to by Hyatt), or renovation, and this disruption materially and negatively impacts the 'Average Monthly Revenues' during the preceding twelve full calendar month period, the calculation method changes.

Instead of using the impacted twelve-month period, Caption By Hyatt will determine the 'Average Monthly Revenue' by referencing the most recent twelve full calendar month period before the termination, during which the hotel's performance was not affected by such disruptions. This adjustment aims to provide a fairer assessment of the hotel's revenue potential by excluding periods when operations were negatively impacted by unforeseen circumstances.

This clause protects both Caption By Hyatt and the franchisee by ensuring that financial assessments, especially those tied to termination fees or performance evaluations, are based on a more representative period of normal operation. For a prospective franchisee, this means that temporary setbacks due to events outside their control will not permanently skew calculations that could affect their financial obligations or the valuation of their franchise.