How are 'System Services Charges' determined for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
"System Services Charges" means the amounts that the Hyatt Group charges the Hotel, and you will pay, for the Hotel's equitably allocable share of the System Services Costs attributable to the System Services in which the Hotel participates (or is obligated to participate), as the Hyatt Group periodically determines them. The Hyatt Group determines System Services Charges on the same basis as it determines those amounts for other Brand Hotels and Hyatt Network Hotels that we periodically and reasonably determine are similarly situated with the Hotel (subject to Reasonable Deviations (as defined in Item 8) and that participate in those System Services in the same manner (collectively, "Participating Hotels"). The Hyatt Group may in its reasonable discretion periodically change its method of allocation of the System Services Costs among Participating Hotels, and the categories of Brand Hotels and/or other Hyatt Network Hotels that are classified as Participating Hotels, but will at all times determine the method of allocation and categories of Participating Hotels on a reasonable, equitable and non-discriminatory basis.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, System Services Charges are the amounts that the Hyatt Group charges the Hotel for its share of System Services Costs. These costs are attributable to the System Services in which the Hotel participates or is obligated to participate. The Hyatt Group determines these charges periodically.
The System Services Charges are determined on the same basis as for other Brand Hotels and Hyatt Network Hotels that are similarly situated and participate in those System Services in the same manner. These hotels are referred to as "Participating Hotels". The Hyatt Group may periodically change its method of allocating System Services Costs among Participating Hotels and the categories of Brand Hotels and/or other Hyatt Network Hotels classified as Participating Hotels.
However, the method of allocation and categories of Participating Hotels will be determined on a reasonable, equitable, and non-discriminatory basis. This means that Caption By Hyatt aims to distribute these costs fairly among hotels in the network, without unfairly burdening or favoring any particular location or type of property. Franchisees should be aware that these charges can change over time as the costs of providing services fluctuate and as Hyatt refines its allocation methods.