On what does Caption By Hyatt's performance of IT Project Management Services depend?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Training for Hyatt Proprietary Systems
We will provide the IT project management services, which are described in Exhibit E of the Franchise Agreement, relating to the opening of the Hotel (the "IT Project Management Services"). Our performance is dependent on your timely, accurate and effective performance of all responsibilities listed in Exhibit E to the Franchise Agreement. These services include blueprint review and IT project management and planning and installation, configuration and training services for Hyatt proprietary systems. You must pay us a non-refundable fee of $58,300 for a Hotel with up to 250 guest rooms, and you must reimburse us or our affiliate for our or its reasonable expenses in rendering the IT Project Management Services, including any necessary transportation, lodging and meals (which we anticipate will range from $6,695 to $11,330), plus applicable taxes. If your Hotel is larger than 250 guest rooms, we may require a larger IT Project Management Services fee, which we and you would agree on before signing the Franchise Agreement. We will invoice you for the IT Project Management Services fee (including expenses)
on or after we complete an IT Project Management Service or upon your termination of the Hotel development project or the IT Project Management Services, for any reason, in either event regardless of whether we have approved the Hotel for opening.
Source: Item 5 — Initial Fees (FDD pages 16–20)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Caption By Hyatt's performance of IT Project Management Services is dependent on the franchisee's timely, accurate, and effective performance of all responsibilities listed in Exhibit E to the Franchise Agreement. These IT Project Management Services relate to the opening of the hotel and include blueprint review, IT project management and planning, and installation, configuration, and training services for Hyatt proprietary systems.
For a hotel with up to 250 guest rooms, the franchisee must pay a non-refundable fee of $58,300 for these IT Project Management Services. Additionally, the franchisee is required to reimburse Caption By Hyatt or its affiliate for reasonable expenses incurred while rendering these services. These expenses include transportation, lodging, and meals, which are anticipated to range from $6,695 to $11,330, plus applicable taxes. If the hotel has more than 250 guest rooms, Caption By Hyatt may require a larger IT Project Management Services fee, which would be agreed upon before signing the Franchise Agreement.
Caption By Hyatt will invoice the franchisee for the IT Project Management Services fee, including expenses, either upon completion of an IT Project Management Service or if the franchisee terminates the hotel development project or the IT Project Management Services for any reason. This applies regardless of whether Caption By Hyatt has approved the hotel for opening. This means that franchisees need to be prepared to fulfill their obligations as outlined in Exhibit E to ensure Caption By Hyatt can effectively provide the IT Project Management Services, and to manage costs associated with these services and potential termination scenarios.