When is the IT project management services fee due for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
NITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT
| . Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| New development application fee or change of ownership application fee(1) | $95,000 to |
Source: Item 7 — Estimated Initial Investment (FDD pages 36–40)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the IT project management services fee and expense reimbursement, which ranges from $64,995 to $69,630, is due before the Hotel opens. The method of payment is as agreed upon between Caption By Hyatt and the franchisee. This fee is paid directly to Caption By Hyatt.
This fee covers the costs associated with Caption By Hyatt providing IT project management services during the setup phase of the franchise. It is essential for prospective franchisees to factor this expense into their initial investment calculations and to discuss the payment schedule and specific services covered with Caption By Hyatt to avoid any surprises.
Understanding when this fee is due is crucial for managing cash flow during the pre-opening phase. Since it is due before the hotel opens, franchisees should ensure they have allocated sufficient funds to cover this cost in a timely manner. Clarifying the 'as agreed' payment terms with Caption By Hyatt will help in planning and budgeting effectively.