Can the payment procedure for Royalty Fees be changed periodically for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Electronic Payments. You must make all payments for Royalty Fees, System Services Charges, and other amounts due to us or any member of the Hyatt Group under the Franchise Agreement or relating to the Hotel by electronic funds transfer ("EFT") in compliance with System Standards. We periodically may change the procedure for payments. You must make funds available in your account to cover payments when due. You may not change your bank, financial institution, or account used in the operation of the Hotel without first telling us.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Caption By Hyatt franchisees must make all payments for Royalty Fees, System Services Charges, and other amounts due via electronic funds transfer (EFT) in compliance with System Standards. Caption By Hyatt periodically may change the procedure for these payments.
This means that Caption By Hyatt has the right to modify how franchisees remit their payments. Franchisees are obligated to ensure funds are available in their account to cover payments when due.
Furthermore, franchisees cannot change their bank, financial institution, or account used in the operation of the hotel without first notifying Caption By Hyatt. This gives Caption By Hyatt some control over the financial accounts used for the franchise, ensuring they can reliably collect fees and charges. This is a fairly standard practice in franchising, allowing the franchisor to maintain consistent payment processes across all franchise locations.