When is the operator approval fee due for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Operator approval fee and re-entry fees | Currently $10,000 to $20,000, but could increase | Before the new management company enters our operator screening process | Applies if you appoint a new management company to operate the Hotel if that new management company is not already an approved operator of Brand Hotels |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, an operator approval fee is required if a franchisee appoints a new management company to operate the hotel, provided that the new management company is not already an approved operator of Brand Hotels. This fee ranges from $10,000 to $20,000 but could increase.
The operator approval fee is due before the new management company enters the operator screening process. This means that the franchisee must pay the fee before Caption By Hyatt begins evaluating the proposed new management company.
This fee is non-refundable, like most fees listed in the Item 6 table, so if Caption By Hyatt does not approve the new management company, the franchisee will not receive a refund of the operator approval fee. Franchisees should factor this into their decision-making process when considering a change in management companies.