Is the initial Application Fee for a Caption By Hyatt franchise refundable?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) The initial Application Fee was fully earned by Hyatt and non-refundable upon Hyatt's approval of Franchisee's franchise application before Hyatt and Franchisee signed this Agreement.
If Hyatt and Franchisee agree to add guest rooms to the Hotel above the number of rooms stated in Exhibit B-3 before the Hotel opens, then Franchisee must pay Hyatt, when Hyatt approves the additional guest rooms, an additional Application Fee in an amount equal to the amount set forth in Exhibit B-1.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the initial Application Fee is generally non-refundable. Specifically, once Hyatt approves a franchise application, the initial Application Fee is considered fully earned and is not refundable. This means that a prospective Caption By Hyatt franchisee should be certain of their decision before submitting the application, as the fee will be forfeited upon approval, regardless of whether a franchise agreement is ultimately signed.
However, there is an exception regarding a Change of Ownership Application. If a franchisee seeks to transfer ownership and Hyatt does not approve the Change of Ownership Application, Hyatt will refund the application fee, less $7,500 for processing costs. This indicates that while the initial franchise application fee is non-refundable, fees associated with a transfer of ownership may be partially refundable under specific circumstances.
Prospective Caption By Hyatt franchisees should carefully consider these terms and conditions regarding fee refunds. It is important to clarify with Hyatt the specific conditions under which any fees might be refundable, especially in situations involving changes of ownership or other potential scenarios where the franchise agreement might not proceed as initially planned. Understanding these financial commitments is crucial before moving forward with a Caption By Hyatt franchise.