What systems is a Caption By Hyatt franchisee required to participate in and use?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ods and services they buy for Brand Hotels that they operate.
You also must participate in and comply with the terms of all of our mandatory marketing, reservation service, rate and room inventory management, advertising, cooperative advertising, guest frequency and loyalty, social responsibility, discount or promotional, customer award, customer loyalty, Internet, computer, training and operating programs, including a PMS that interfaces with the CRS or any other central reservation system that we periodically adopt. We may periodically establish and/or coordinate these programs with third parties we designate. These third parties might (but need not) be our affiliates. You must sign and comply with any license, participation and other agreements we periodically specify relating to these programs.
You may not make any material changes to the Hotel's construction, including any changes to any structural or life safety equipment or systems, the number and/or type of guest rooms or common areas, or any architectural features, without our prior written consent and complying with our conditions and procedures. We may periodically require you to upgrade or renovate the Hotel, including by altering the Hotel's appearance and/or replacing a material portion of improvements and/or FF&E, to comply with then current building décor, appearance, trade dress standards and other aspects of the Hotel System that we have established and then require for new similarly situated Brand Hotels (subject to Reasonable Deviations (defined below)). This upgrading or renovation might require you to invest additional capital in the Hotel and/or incur higher operating costs. You must implement the upgrading and renovation within the time period we request. However, all of these upgrades and renovations will apply to similarly situated Brand Hotels (subject to Reasonable Deviations). In order to assist you in having funds available to make any necessary capital expenditures at the Hotel and comply with your upgrade and renovation obligations (but without limiting those obligations), each month you must deposit into a separate account that you control an amount equal to (a) 3% of the Hotel's Gross Rooms Revenue accrued during the first year of operations, (b) 4% of the Hotel's Gross Rooms Revenue accrued during the second year of operations, and (c) 5% of the Hotel's Gross Rooms Revenue accrued during the balance of the Franchise Agreement's term. You will use these funds only to make approved capital expenditures and comply with your upgrade and renovation obligations, although your obligations may require you to spend more than the amount in the account.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 40–45)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees must participate in several mandatory systems. These include marketing, reservation services, rate and room inventory management, advertising, cooperative advertising, guest frequency and loyalty programs, social responsibility initiatives, discount or promotional offers, customer award programs, customer loyalty initiatives, internet services, computer systems, training programs, and operating programs. A key component is the Property Management System (PMS) that interfaces with the Central Reservation System (CRS) or any other central reservation system adopted by Caption By Hyatt. Franchisees are also required to use the authorized CRS, Global Distribution Systems (GDS), and Alternative Distribution Systems (ADS) designated by Caption By Hyatt for managing guest room reservations.
The Central Reservation System (CRS) and approved GDS and ADS are the only reservation systems or services that the Hotel may use for reservations. Caption By Hyatt mandates that franchisees honor all confirmed reservations made through these systems, giving them first priority on available rooms. This ensures consistency and reliability in reservation management across all Caption By Hyatt locations.
Caption By Hyatt also requires the use of the Opera PMS, which must be hosted remotely through an agreement with Caption By Hyatt. Additionally, franchisees must contract with a designated supplier for connectivity services and training related to the PMS, although there are exceptions for hotels located in Hawaii or Puerto Rico, where self-hosting may be permitted with approval. These mandatory systems are part of the 'Mandatory Services' that Caption By Hyatt specifies periodically, and franchisees must acquire these services exclusively from a member of the Hyatt Group.