What do revenues for reimbursed costs represent for Caption By Hyatt?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, revenues for reimbursed costs consist of reimbursements for costs that Caption By Hyatt incurs on behalf of third-party owners and franchisees. These costs are primarily related to payroll at managed properties where Caption By Hyatt acts as the employer. Additionally, these revenues cover costs associated with system-wide services and the loyalty program that Caption By Hyatt operates for the benefit of the owners.

For a Caption By Hyatt franchisee, this means that certain expenses they incur may be reimbursed by third-party owners or franchisees through these revenue streams. This is particularly relevant for managed properties where Caption By Hyatt is the employer, as payroll costs are a significant component of these reimbursements. The system-wide services and loyalty program costs also contribute to these revenues, indicating that franchisees participate in and benefit from these broader network services.

It's important to note that Caption By Hyatt intends to manage these system-wide programs to break-even over time, meaning they do not aim to profit from these services. However, there may be timing differences between when revenues are received from owners and when expenses are incurred to operate the programs, which could impact Caption By Hyatt's net income. Franchisees should understand how these reimbursements are calculated and distributed, as they directly affect the costs and revenues associated with operating their Caption By Hyatt franchise.