For Caption By Hyatt, where are transaction costs for completed dispositions recognized in the financial statements?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, transaction costs incurred during the period of a completed disposition are recognized in gains (losses) on sales of real estate and other on the company's consolidated statements of income. This means that when Caption By Hyatt sells a property, any costs associated with that sale, such as professional fees, are factored into the overall gain or loss reported from the sale.

For a prospective Caption By Hyatt franchisee, this accounting treatment is relevant in understanding the financial statements of the franchisor. When reviewing Caption By Hyatt's financial performance, it's important to note that the gains or losses from property sales already account for the transaction costs. This provides a more accurate picture of the actual profit or loss realized from these transactions.

This accounting practice is fairly standard, as it aligns the costs directly related to a disposition with the revenue generated from that disposition, giving stakeholders a clear view of the net impact of such transactions on Caption By Hyatt's financial results. Understanding this can help franchisees better assess the financial health and strategic decisions of the franchisor.