When is the royalty fee upon termination due for a Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| General Manager University | Currently $2,700 per newly hired or promoted general manager, but could increase if costs increase | As incurred | Required training program for all newly hired or recently promoted general managers. In addition to the fee for attendance, you must pay the travel, lodging and other expenses for your attendees |
| 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 |
| Transfer fee | No fee for transfers, but you or the transferee must pay the then- current amount of the change of ownership application fee | Together with transfer application | Applies to control transfers. We will refund the change of ownership application fee paid (less $7,500) if we disapprove transfer |
| Fee for review of offering materials | $5,000 | When submitting materials for our review | Due only if you or your owners propose offering of ownership interests in you or an owner |
| PIP fee for conversion of existing structure or for successor franchise | Then current PIP fee – currently $10,000, but could increase | With franchise application for conversion of an existing structure or a successor franchise | Due only if you are converting an existing structure to a Brand Hotel or applying for a successor franchise |
| Royalty fee upon termination | $5,000 per day plus our costs and expenses | As incurred | Due only if, and while, you fail to properly de-identify the Hotel after expiration or termination |
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, a royalty fee upon termination is due as incurred. This fee amounts to $5,000 per day, in addition to Caption By Hyatt's costs and expenses.
This royalty fee is specifically incurred if the franchisee fails to properly de-identify the hotel after the franchise agreement's expiration or termination. De-identifying the hotel means removing all Caption By Hyatt branding and trademarks from the property so that it no longer appears to be a Caption By Hyatt hotel.
The purpose of this fee is to ensure that franchisees promptly remove all branding to avoid any confusion or misrepresentation to the public after the franchise agreement ends. Franchisees should be aware of these costs and ensure they fully understand the de-identification requirements to avoid incurring these daily fees.