Under what condition is an additional Application Fee required for a Caption By Hyatt franchise?

According to the 2025 FDD, Caption By Hyatt requires an additional Application Fee if the franchisee and Hyatt agree to increase the number of guest rooms in the hotel beyond what was initially stated in Exhibit B-3, before the hotel opens. The franchisee must pay this additional fee when Hyatt approves the addition of these guest rooms. The amount of this additional fee is equal to the amount set forth in Exhibit B-1.

This condition means that if a franchisee decides to expand the hotel's capacity before it even opens, they will incur an extra cost. This fee is in addition to the initial Application Fee, which is non-refundable once Hyatt approves the franchise application. Franchisees need to carefully consider their initial plans for the hotel's size and potential future expansion before finalizing the agreement to avoid unexpected costs.

It is important for prospective Caption By Hyatt franchisees to review Exhibit B-1 and B-3 to understand the initial Application Fee amount and the initially agreed-upon number of rooms. This will help in making informed decisions about any potential expansions before the hotel's opening and in budgeting for the associated additional fees. Franchisees should also discuss potential expansion plans with Hyatt during the initial application process to understand the full financial implications.