Under what circumstances might Caption By Hyatt waive the Extension Fee?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
from $3,600 to $7,405.
Extension Fee
If you are constructing a new Hotel, you must start and complete construction and open the Hotel, according to the timetables in the Franchise Agreement. If you are converting an existing hotel to a Brand Hotel, you must start renovation and open the Hotel under the Hotel System according to the timetables in the Franchise Agreement. We may terminate the Franchise Agreement if you fail to meet the required timetable. You may request one or more extensions of time by giving us, at least 3 months before the opening deadline, a written extension request and a $10,000 "Extension Fee." We will inform you of the length of the extension if and when we grant it. We will refund the Extension Fee only if we deny the extension. We may
Source: Item 5 — Initial Fees (FDD pages 16–20)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, an extension fee of $10,000 is typically required when a franchisee requests an extension to the construction or renovation timetable outlined in the Franchise Agreement. This fee is submitted along with a written extension request at least three months before the opening deadline. Caption By Hyatt will only refund the extension fee if the extension request is denied. However, the document states that Caption By Hyatt "may waive this fee under some circumstances."
The FDD does not specify the exact circumstances under which Caption By Hyatt might waive the extension fee. This leaves the potential franchisee with some uncertainty, as they cannot definitively know if they will be required to pay the $10,000 fee should they need an extension.
Prospective Caption By Hyatt franchisees should directly inquire with the franchisor to understand the specific conditions under which the extension fee may be waived. Understanding these conditions can help franchisees better plan for potential delays and associated costs during the development or renovation phase of their hotel.