Under what condition might the Royalty Fee be reduced for a Caption By Hyatt hotel, and for what duration?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Royalty Fee. Your Royalty Fee will be 5% of Gross Rooms Revenue accrued during the previous month. If you are constructing a new Hotel, we may agree to reduce your Royalty Fee for the first 1-3 years of the Hotel's operations.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the standard Royalty Fee is 5% of Gross Rooms Revenue accrued during the previous month. However, Caption By Hyatt may agree to reduce this Royalty Fee under a specific circumstance.
Specifically, if a franchisee is constructing a new Caption By Hyatt hotel, the franchisor may agree to reduce the standard Royalty Fee. This reduction is not guaranteed, but is a possibility that Caption By Hyatt may offer at their discretion.
If a Royalty Fee reduction is granted for a newly constructed Caption By Hyatt hotel, the reduction may last for the first one to three years of the hotel's operations. This timeframe provides some financial relief during the initial ramp-up phase of the business. Prospective franchisees should discuss the possibility of securing a reduced Royalty Fee with Caption By Hyatt during the negotiation phase, especially when planning a new construction project.