Through what year do Caption By Hyatt's debt repayment guarantees in the United States expire?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ities on our consolidated balance sheets related to these performance cure payments.
Debt Repayment Guarantees—We enter into various debt repayment guarantees in order to assist third-party owners, franchisees, and unconsolidated hospitality ventures in obtaining third-party financing or to obtain more favorable borrowing terms.
| Geographical region | Maximum potential future payments (1) | Maximum exposure net of recoverability from third parties (1) | Other long term liabilities recorded at December 31, 2024 | Other long term liabilities recorded at December 31, 2023 | Year of guarantee expiration (2) |
|---|
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the debt repayment guarantees for the United States extend through 2030. The document provides a table outlining the geographical regions, potential future payments, maximum exposure net of recoverability, other long-term liabilities, and the year of guarantee expiration.
For the United States, the maximum potential future payments are $125 million, with a maximum exposure net of recoverability from third parties of $25 million. The other long-term liabilities recorded at December 31, 2024, were $51 million, compared to $30 million at December 31, 2023.
This information is relevant for prospective Caption By Hyatt franchisees as it provides insight into the financial commitments and guarantees that Caption By Hyatt has in place, which could indirectly affect the financial stability and support available to franchisees. Understanding the extent and duration of these guarantees helps franchisees assess the financial health and risk profile associated with the franchise.