What are 'Mandatory Services' in the context of a Caption By Hyatt franchise?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, Mandatory Services are defined as mandatory System Services that one or more members of the Hyatt Group provides to the Hotel and certain other Brand Hotels and other Hyatt Network Hotels. The Hyatt Group determines that these services must be acquired only from the Hyatt Group.

In essence, these are services that Caption By Hyatt franchisees are required to participate in and acquire directly from the Hyatt Group. The FDD specifies that franchisees must participate in all Mandatory Services and related programs as directed by Hyatt. Hyatt may periodically add to, delete from, and otherwise modify System Services, including Mandatory Services, with written notice to the franchisee.

The fees for Mandatory Services are typically imposed and collected by Hyatt Corporation. However, depending on the hotel's specific circumstances, such as size, location, and market positioning, Hyatt may reclassify some Mandatory Services as Non-Mandatory Services, or vice versa. The Hyatt Group incurs costs in providing these services, and franchisees pay their share of these costs, known as System Services Charges. These charges are allocated equitably among Participating Hotels, although the allocation method may change periodically. System Services Costs include the actual costs that the Hyatt Group incurs and are not subject to any mark-up, premium or profit on any Mandatory Services, but may include a profit or mark-up component on Non-Mandatory Services.