What is the total value of customer relationship intangibles, before and after deductions, for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Management and hotel services agreement and franchise agreement intangibles | $ 906 $ (248) $ 658 |
|---|---|
| Brand and other indefinite-lived intangibles 608 — 608 | |
| Customer relationships intangibles | 620 (243) 377 |
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the value of customer relationship intangibles is reported as $620 before deductions and $377 after deductions. The deduction amount is $243. These figures reflect the valuation of the customer relationships that Caption By Hyatt has established, and the adjustments made to that valuation.
For a prospective Caption By Hyatt franchisee, understanding these intangible values is crucial because they represent a portion of the overall assets and financial health of the franchise system. Customer relationships are a key component of the brand's value, and the net value after deductions can indicate the real, usable value of these relationships.
The depreciation of customer relationship intangibles for Caption By Hyatt is between 4 and 12 years. This means that the initial value of these intangibles is amortized over this period, impacting the franchisee's financial statements and potentially affecting the resale value of the franchise.
It is important for potential franchisees to further investigate the nature of these deductions and how they might impact the long-term value and profitability of a Caption By Hyatt franchise. Understanding the factors that influence these deductions can help in making informed investment decisions.