What is the range of the operator approval fee for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Operator approval fee and re-entry fees | Currently $10,000 to $20,000, but could increase | Before the new management company enters our operator screening process | Applies if you appoint a new management company to operate the Hotel if that new management company is not already an approved operator of Brand Hotels |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, an operator approval fee ranging from $10,000 to $20,000 is required if a franchisee appoints a new management company to operate the hotel, provided that the management company is not already an approved operator of Caption By Hyatt hotels. This fee is subject to change and could increase.
For a prospective Caption By Hyatt franchisee, this means that if you decide to change your hotel's management company during the term of your franchise agreement, and the new company hasn't already been vetted and approved by Hyatt, you'll need to pay this fee before the new management company can begin the approval process. This fee covers Caption By Hyatt's costs to screen and approve the new operator.
It's important to note that the fee is not fixed and may increase, so it's essential to factor this potential cost escalation into your financial planning. Additionally, this fee is separate from any other costs associated with changing management companies, such as legal fees or termination penalties from your previous management agreement. Franchisees should clarify with Caption By Hyatt what the current fee is at the time of the change and understand the criteria for management company approval.