When is the Royalty Fee due to Hyatt for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Monthly Fees to Hyatt.
On or before the tenth (10th) day of each month or such later day of the month that Hyatt periodically specifies, Franchisee shall pay Hyatt:
(a) a “Royalty Fee” equal to the amount set forth in Exhibit B-1;
(b) the System Services Charges for the previous month.
Franchisee acknowledges that System Services Charges will include an allocable proportion of certain System Services Costs incurred during the period before the Hotel opens in accordance with this Agreement.
Sys
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Royalty Fee is due on or before the tenth (10th) day of each month, or such later day of the month that Hyatt periodically specifies. The Royalty Fee amount is detailed in Exhibit B-1. Franchisees are also required to pay System Services Charges for the previous month at the same time.
Caption By Hyatt requires all payments for Royalty Fees, System Services Charges, and other amounts due to Hyatt to be made via electronic funds transfer (EFT). Franchisees must ensure that funds are available in their account to cover these payments when they are due. Franchisees are not allowed to change their bank, financial institution, or account used for the hotel's operation without first notifying Hyatt.
If a franchisee fails to make a required payment on or before its original due date, or if an authorized automatic debit is not honored by the franchisee's financial institution, Caption By Hyatt will charge a late fee of $225. Additionally, any amounts owed to Hyatt that are more than seven days late will accrue interest from the original due date at a rate of 1.5% per month, or the highest commercial contract interest rate allowed by law, whichever is less.