For Caption By Hyatt, when are revenues recognized for excursions provided by third-party companies?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, revenue recognition for excursions provided by third-party companies occurs on the day of the excursion. The revenue recognized is net of related costs. This accounting practice is part of Caption By Hyatt's broader revenue recognition policies, which align with standard accounting principles where revenue is typically recognized when the service is provided.

For a Caption By Hyatt franchisee, this means that the revenue from excursions isn't recognized when the booking is made or when payment is received, but rather on the actual day the excursion takes place. This could impact the timing of revenue recognition and potentially affect financial reporting periods. The 'net of related costs' aspect means that only the profit portion of the excursion fee is recognized as revenue, after deducting the direct costs associated with providing the excursion.

This approach is consistent with how Caption By Hyatt recognizes revenue across various services, focusing on when the service is actually delivered. For instance, revenues from hotel accommodations are recognized as the guest occupies the room. Understanding these revenue recognition timings is crucial for franchisees to accurately forecast and manage their financials, ensuring compliance with accounting standards and providing a clear picture of their business performance.