What System Services are provided for a Caption By Hyatt Hotel during its pre-opening period?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
operating the pre-opening sales office. (Section 2.4 of Franchise Agreement)
- (7) Provide the applicable System Services for the Hotel during its pre-opening period. (Section 4.1 of Franchise Agreement)
- (8) Approve a pre-opening marketing program that you prepare according to our requirements. At least 120 days before the Hotel's opening, you must prepare and submit to us for our approval a written pre-opening marketing program that satisfies our requirements and contemplates spending at least $500 times the number of guest rooms at the Hotel. You must change the program as we specify and implement the approved program. We anticipate your spending additional amounts on pre-opening marketing as well. (Section 5.1 of Franchise Agreement)
- (9) Provide data installation services relating to the initial set-up of the CRS, GDS and ADS at the Hotel, IT Project Management Services and other technology-related services described in Item 5. (Section 2.2 of Franchise Agreement) We describe the Technology System later in this Item.
- (10) Provide you access to the CRS and listings in advertising publications that we periodically specify during the period before the Hotel's opening date that we reasonably specify. (Section 3.3 of Franchise Agreement)
- (11) Train your Hotel's senior manager-level employees whom we periodically designate, which may include (as applicable), the general manager, rooms director, director of sales, engineering director, director of food and beverage, director of catering, executive chef, and assistant general manager (collectively the "Core Management") and other Hotel personnel we specify in the operation of a Brand Hotel to help ensure compliance with System Standards. We will place our trainer(s) at the Hotel for its opening. (Section 3.1 of Franchise Agreement)
- (12) Provide you access to the System Standards. You must comply with the System Standards, as we periodically modify them, except for any employment-related or other policies and procedures which are clearly indicated in the System Standards as being for your optional use. We may communicate the System Standards to you using various means that we may periodically establish, including electronic media and/or written materials, and you must continuously monitor and access any updates to the System Standards or other aspects of the Hotel System. The System Standards and any passwords or other digital identifications necessary to access the System Standards are confidential.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the brand provides several system services to franchisees during the pre-opening period of their hotel. These services include providing the applicable System Services, approving a pre-opening marketing program prepared by the franchisee that meets Caption By Hyatt's requirements, and approving the establishment of a temporary or permanent sales office at the Hotel's site to solicit and accept reservations during the pre-opening period for stays after the Hotel's opening date.
Specifically, Caption By Hyatt requires the franchisee to prepare and submit a written pre-opening marketing program for approval at least 120 days before the hotel's opening. This program must meet Caption By Hyatt's standards and include a budget of at least $500 multiplied by the number of guest rooms in the hotel. The franchisee is obligated to modify the program as directed by Caption By Hyatt and then implement the approved version.
Additionally, Caption By Hyatt offers data installation services related to the initial setup of the CRS (Central Reservation System), GDS (Global Distribution System), and ADS (Advertising Data System) at the hotel. They also provide IT Project Management Services and other technology-related services. Furthermore, Caption By Hyatt grants access to the CRS and listings in advertising publications during a period before the hotel's opening date. Caption By Hyatt will also train the Hotel's senior manager-level employees in the operation of a Brand Hotel to help ensure compliance with System Standards.
These pre-opening services are designed to help the franchisee establish the Caption By Hyatt brand presence, train staff, and set up essential systems for managing reservations and marketing efforts. The initial training program also includes sending a pre-opening team of 2 to 3 trainers to assist with training the Hotel staff on brand standards and related issues concerning the Hotel's opening. The franchisee must pay a fee and the trainers' travel and living expenses. The trainers typically stay for a minimum of 7 nights (not including virtual training).