When is the PIP fee due for a Caption By Hyatt franchise, and under what circumstances is it required?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| PIP fee for conversion of existing structure or for successor franchise | Then current PIP fee – currently $10,000, but could increase | With franchise application for conversion of an existing structure or a successor franchise | Due only if you are converting an existing structure to a Brand Hotel or applying for a successor franchise |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a PIP (Property Improvement Plan) fee is required in specific situations related to conversions or franchise transfers. The PIP fee is due with the franchise application under two main circumstances: when converting an existing structure into a Caption By Hyatt hotel, or when applying for a successor franchise.
The current PIP fee is $10,000, but the FDD indicates that this amount is subject to change and could increase. This fee covers the franchisor's costs of assessing the existing property or the terms of the successor franchise agreement to ensure it meets Caption By Hyatt's brand standards. It is important to note that this fee is separate from any actual costs associated with the property improvements themselves, which would be the franchisee's responsibility.
For a prospective Caption By Hyatt franchisee, this means that if you are planning to convert an existing building into a Caption By Hyatt location or take over an existing franchise, you should budget for this fee in addition to the standard franchise fee and other initial investment costs. Given that the fee could increase, it would be prudent to confirm the current amount with Caption By Hyatt at the time of application to ensure accurate financial planning.