What is the operator approval fee for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Either a Management Company that Hyatt approves in writing or Franchisee (if Hyatt approves Franchisee to manage the Hotel) must at all times retain and exercise direct management control over all aspects of the Hotel's business and must be the employer of the Hotel's Core Management and other personnel, except for any members of Core Management that are overseen by an F&B Operator whom Hyatt approves. At Hyatt's option, before any of the Hotel's Core Management are engaged, Franchisee must submit to Hyatt the identity and qualifications of the proposed candidates. These personnel must be in place and working on behalf of the Hotel by the time period Hyatt specifies. Franchisee may not enter into a Management Arrangement without Hyatt's prior written approval of the Management Company, and Franchisee may not itself manage the Hotel without Hyatt's approval of Franchisee as the Hotel's operator. Hyatt will not unreasonably withhold its approval if the Management Company or Franchisee (as applicable) meets Hyatt's minimum qualifications, including Hyatt's then current operator approval fee, and ensures that its personnel attend and satisfactorily complete required brand standard training programs.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, either the franchisee or a management company must manage the hotel. If the franchisee intends to manage the hotel themselves, they must obtain Hyatt's approval. Hyatt states that it will not unreasonably withhold approval if the franchisee meets Hyatt's minimum qualifications, including Hyatt's then-current operator approval fee. The FDD states that the personnel must attend and satisfactorily complete required brand standard training programs.
If the franchisee chooses to use a management company, Hyatt must approve the management company in writing. As a condition of approval, the management company must sign documents to protect Hyatt's intellectual property rights and agree to operate the hotel in compliance with the franchise agreement. The management company must also attend and successfully complete Hyatt's designated operator training programs for Brand Hotels, if any.
Prospective Caption By Hyatt franchisees should inquire about the specific amount of the operator approval fee, the minimum qualifications for franchisees or management companies seeking approval, and the details of the required brand standard training programs to fully understand the requirements and costs associated with managing the hotel.