Under what conditions will the Caption By Hyatt application fee be refunded?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Before signing the Franchise Agreement, and while you apply for franchise rights, you must submit a franchise application (Exhibit B) through our online application portal and pay the application fee. We will refund the application fee less a fee to cover our costs if you withdraw your franchise application before we approve it or if we do not approve it. During your evaluation process, and before receiving any Confidential Information, you must sign the Confidentiality Agreement (Exhibit F) (the "Confidentiality Agreement"). Because we may engage in negotiations with you and other franchisees, you may sign a Franchise Agreement with us that differs significantly from the agreements that other franchisees sign for Brand Hotels.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–14)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the application fee is refundable under specific circumstances. If a prospective franchisee withdraws their franchise application before Caption By Hyatt approves it, or if Caption By Hyatt does not approve the application, the application fee will be refunded. However, the refund will be less a fee to cover Caption By Hyatt's costs.
This means that an individual applying for a Caption By Hyatt franchise may not receive the entire application fee back if they decide to withdraw their application early in the process or if Caption By Hyatt rejects the application. The deduction from the refund is intended to cover the expenses Caption By Hyatt incurs while processing the application.
It is important for potential franchisees to understand this policy before submitting their application and paying the fee. They should inquire about the potential amount of the deduction to cover Caption By Hyatt's costs in case of withdrawal or rejection to fully understand the financial implications. This is a fairly standard practice in franchising, as the franchisor incurs costs reviewing applications.