What is a potential consequence if a Caption By Hyatt franchisee chooses not to use Avendra?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Avendra, LLC ("Avendra") is a products and services sourcing company that offers volume contracts to its customer hotels on a variety of FF&E and other items used in hotel operations, including food and beverage equipment and supplies (such as branded and commodity programs), operating equipment and supplies (such as linens, pillows, terry, and light bulbs), and other products and services (such as printing and stationery, logoed items, chemicals, and pest elimination), at competitive prices that Avendra negotiates. You determine whether, and the extent to which, your Hotel will use Avendra's services. However, if you choose not to use Avendra, you might find it impracticable to purchase certain products for the Hotel (such as bathroom amenities made specifically for Hyatt Network Hotels) elsewhere.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Avendra, LLC is a sourcing company that offers volume contracts to customer hotels for various FF&E and other operational items. These items include food and beverage equipment and supplies, operating equipment and supplies, and other products and services at competitive prices. While Caption By Hyatt franchisees determine the extent to which they use Avendra's services, choosing not to use Avendra may lead to difficulties in purchasing certain products.
Specifically, if a Caption By Hyatt franchisee opts out of using Avendra, it might become impractical to acquire certain products for the hotel, such as bathroom amenities made specifically for Hyatt Network Hotels. This restriction could impact the franchisee's ability to maintain brand standards and offer the amenities expected by guests of Hyatt Network Hotels.
This requirement ensures brand consistency across all Hyatt Network Hotels, as using designated suppliers helps maintain uniform quality and standards. While franchisees have some autonomy in choosing suppliers, Caption By Hyatt retains control over critical items to protect the brand's reputation and customer experience. Prospective franchisees should consider these restrictions and the potential impact on their purchasing options and costs when evaluating the franchise opportunity.