When will the IT Project Management Services Fee be invoiced by Hyatt for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee shall pay Hyatt the “IT Project Management Services Fee” set forth in Exhibit B-1, plus any applicable taxes thereon.
The IT Project Management Services Fee is non-refundable.
Franchisee shall reimburse Hyatt's or its Affiliate's reasonable expenses in connection with rendering the IT Project Management Services, including any necessary transportation, lodging and meals, plus applicable taxes thereon.
The IT Project Management Services Fee (including expenses) will be invoiced by Hyatt no earlier than: (i) Hyatt's completion of the IT Project Management Services or (ii) upon Franchisee's termination of the Hotel development project or the IT Project Management Services, for any reason, in either event regardless of whether Hyatt has approved the Hotel for opening.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Hyatt will invoice the IT Project Management Services Fee under specific conditions. The fee, along with any associated expenses, will be invoiced no earlier than Hyatt's completion of the IT Project Management Services. Alternatively, Hyatt may invoice the fee upon the franchisee's termination of the hotel development project or the IT Project Management Services, regardless of whether Hyatt has approved the hotel for opening. This means a Caption By Hyatt franchisee can expect to be billed for these services either upon completion of the IT project or if the project is terminated prematurely.
This policy has several implications for prospective Caption By Hyatt franchisees. First, the franchisee should be prepared to pay the IT Project Management Services Fee even if the hotel development project does not reach completion. Second, the franchisee should ensure clear communication and project management to avoid potential termination of the IT Project Management Services, which would still trigger the invoicing of the fee. Finally, the franchisee should carefully review the scope of services outlined in Exhibit E to understand what is included in the IT Project Management Services to ensure that the services are completed to their satisfaction.
It is also important to note that the IT Project Management Services Fee is non-refundable. This underscores the importance of carefully evaluating the IT requirements and project scope before proceeding with the Caption By Hyatt franchise. Franchisees should also be aware that changes in the scope of IT Project Management Services may occur, potentially leading to additional fees if Hyatt's costs increase as a result of modifications to the technology systems required under the Hotel System. Therefore, franchisees should maintain open communication with Hyatt and proactively manage the IT project to avoid unexpected costs and ensure successful implementation.