When are incentive fees billed and collected for Caption By Hyatt?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, incentive fees are billed and collected based on the terms outlined in the management and hotel services agreement. At a minimum, Caption By Hyatt bills and collects these incentive fees annually.

Incentive fees for Caption By Hyatt are tied to the achievement of certain profitability targets. The brand uses internal financial forecasts and historical trends to estimate the amount of incentive management fees and the probability that these fees might be reversed in the future. This means that the actual amount of incentive fees a franchisee pays can vary depending on the hotel's performance.

Base management and hotel services fees are typically due and payable on a monthly basis as services are provided. However, the timing of billing and collection for incentive fees is more flexible, depending on the specific agreement terms, but with the stipulation that they are billed and collected at least once per year. This annual billing and collection cycle for incentive fees could impact a franchisee's cash flow, as they may need to budget for a potentially large payment at the end of the year.