Under what conditions might Caption By Hyatt reduce or refund FIP fees?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, Caption By Hyatt may reduce or refund FIP (Franchise Improvement Program) fees if a franchisee demonstrates improved performance or accelerates compliance with hotel renovation requirements. The FDD states that Brand Hotels are eligible for up to a 100% reduction of the applicable FIP fee based on improvement in performance under the FIP policies currently in place.

This policy offers a potential financial benefit to Caption By Hyatt franchisees who are initially placed in FIP protocols due to low QA scores. The FIP fees can be substantial, ranging from $5,000 to $20,000 per six-month stage, and $45,000 per year under the BPP (Brand Performance Program). Therefore, the possibility of a fee reduction or refund can serve as a significant incentive for franchisees to quickly address any operational deficiencies and improve their hotel's performance.

It's important for prospective Caption By Hyatt franchisees to understand the specific criteria and process for obtaining a FIP fee reduction or refund. While the FDD indicates that Caption By Hyatt has discretion in these matters, franchisees should inquire about the specific metrics used to assess performance improvement and the requirements for accelerated compliance with renovation standards. Understanding these factors will allow franchisees to proactively manage their operations and potentially mitigate the financial impact of FIP fees.