What specific financial statements are required for each Guarantor of a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Please upload current financial statements (including balance sheet and profit and loss or income statement) for each Guarantor. If Guarantor is a partnership, corporation, or limited liability company, the statements should be submitted for the partnership, corporation or limited liability company, and for each partner, stockholder, or member.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Caption By Hyatt requires current financial statements for each guarantor. These statements must include a balance sheet and a profit and loss or income statement.
If the guarantor is a partnership, corporation, or limited liability company, Caption By Hyatt requires financial statements for the entity itself, as well as for each partner, stockholder, or member. This comprehensive approach ensures that the franchisor has a clear understanding of the financial health of all parties involved in guaranteeing the franchise agreement.
This requirement is typical in franchising, as franchisors need to assess the financial stability of those guaranteeing the franchisee's obligations. By examining the financial statements of both the guarantor entity and its individual stakeholders, Caption By Hyatt aims to mitigate the risk of financial default and ensure the long-term viability of the franchise.