Under what condition might a Caption By Hyatt franchisee not need a liquor license?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, a franchisee may not need a liquor license if they engage a third party to be the Food and Beverage (F&B) Operator. The FDD specifies that whether or not a liquor license is needed depends on the jurisdiction where the hotel is located. This arrangement could potentially simplify operations for the franchisee, as the third-party F&B Operator would assume responsibility for obtaining and maintaining the necessary licenses.

This condition is important for prospective franchisees to consider, as liquor license costs can vary significantly. The FDD estimates these costs to range from $30,000 to $400,000, depending on the jurisdiction. By using a third-party F&B Operator, a franchisee could avoid these costs altogether. However, franchisees should carefully evaluate the terms of the agreement with the third-party operator to ensure it aligns with their business goals.

It is also important to note that even if a third-party F&B operator is used, the Caption By Hyatt franchisee should still ensure that the sale of alcohol complies with all applicable laws and regulations. This may involve working closely with the third-party operator to ensure that they have the necessary training and procedures in place. Franchisees should also consult with legal counsel to ensure they fully understand their obligations.

Ultimately, the decision of whether to obtain a liquor license directly or use a third-party F&B operator will depend on a variety of factors, including the franchisee's risk tolerance, business goals, and the specific requirements of the jurisdiction where the hotel is located. Prospective franchisees should carefully weigh the pros and cons of each option before making a decision.