When are the monthly Royalty Fees due to Hyatt for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before the tenth (10th) day of each month or such later day of the month that Hyatt periodically specifies, Franchisee shall pay Hyatt:
(a) a "Royalty Fee" equal to the amount set forth in Exhibit B-1;
(b) the System Services Charges for the previous month.
| Section | Subject | Applicable Term |
|---|---|---|
| Reference | ||
| 6.2(a) | Royalty Fee | Five percent (5%) of the Hotel's Gross Rooms Revenue accrued during the preceding month |
Franchisee agrees to pay Hyatt a late fee of Two Hundred Twenty-Five Dollars ($225) for each required payment not made on or before its original due date and for each required payment or authorized automatic debit not honored by Franchisee's financial institution.
In addition, all amounts that Franchisee owes Hyatt that are more than seven (7) days late, or that are not available for withdrawal by automatic debit when due (if the amounts are payable by automatic debit), will bear interest accruing as of their original due date at one and one-half percent (1.5%) per month or the highest commercial contract interest rate the law allows, whichever is less.
Franchisee must make all payments for Royalty Fees, System Services Charges and other amounts due to Hyatt or any member of the Hyatt Group under this Agreement or otherwise in connection with the Hotel by electronic funds transfer ("EFT") in compliance with System Standards.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the monthly Royalty Fees are due on or before the tenth (10th) day of each month, or such later day of the month that Hyatt periodically specifies. The Royalty Fee is equal to five percent (5%) of the Hotel's Gross Rooms Revenue accrued during the preceding month.
In addition to the Royalty Fee, the franchisee must also pay the System Services Charges for the previous month on or before the tenth (10th) day of each month, or such later day of the month that Hyatt periodically specifies. Franchisees must also pay all fees and other amounts that Hyatt (or its Affiliates) then has paid or has agreed to pay on Franchisee's behalf to any Providers.
It is important for prospective Caption By Hyatt franchisees to be aware of these payment obligations and to factor them into their financial planning. Late payments are subject to a $225 late fee, and amounts that are more than seven days late will accrue interest at a rate of 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less. All payments for Royalty Fees, System Services Charges and other amounts due to Hyatt or any member of the Hyatt Group must be made by electronic funds transfer (EFT).