How is 'Net Revenue' defined for the purpose of calculating the Way Commission for Caption By Hyatt?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, "Net Revenue" for the Way Commission is defined as the gross revenues actually received by Way from purchases of ancillary services and products. From this amount, any refunds, sales taxes, and third-party transaction fees (including credit card processing fees) are deducted. The Way Commission is equal to 5% of Net Revenues actually received.

Notably, the Way Commission is not assessed on several types of transactions. These include non-revenue generating activities included in the ancillary services and products, ancillary services and products purchased directly at the property (e.g., through concierge or front desk colleagues), non-publicly listed b2b or group sales ancillary services and products even if booked through the Way integrated channels, and Owner/member only ancillary services and products (and only where member ID functionality is used) even if booked through the Way integrated channels.

For a prospective Caption By Hyatt franchisee, this definition of Net Revenue is important because it directly impacts the amount of Way Commission payable. Understanding what is included and excluded from Net Revenue allows the franchisee to accurately forecast and manage this expense. The exclusions provide some relief, particularly for direct property sales and certain group or member-related services.