How must Royalty Fees be paid to Hyatt for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Electronic Payments. You must make all payments for Royalty Fees, System Services Charges, and other amounts due to us or any member of the Hyatt Group under the Franchise Agreement or relating to the Hotel by electronic funds transfer ("EFT") in compliance with System Standards. We periodically may change the procedure for payments. You must make funds available in your account to cover payments when due. You may not change your bank, financial institution, or account used in the operation of the Hotel without first telling us.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Royalty Fees must be paid via electronic funds transfer (EFT). The franchisee is obligated to ensure funds are available in their account to cover these payments when they are due.
The Franchise Agreement mandates that all payments for Royalty Fees, System Services Charges, and any other amounts owed to Hyatt or its affiliates must be made through EFT, adhering to System Standards. Caption By Hyatt retains the right to modify the payment procedures periodically.
Furthermore, franchisees are prohibited from changing their designated bank, financial institution, or account used for the hotel's operation without prior notification to Caption By Hyatt. This ensures that Caption By Hyatt can reliably collect the necessary fees and maintain consistent financial operations across its franchise network.