Bottom line
- Total investment $25.0M – $31.6M including a $95K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Caption by Hyatt unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Caption by Hyatt franchisees own and operate premium lifestyle hotels under the Hyatt brand umbrella. Day-to-day operations include guest services, housekeeping, F&B management, revenue management, staffing, and maintaining brand standards across all hotel departments—while paying 5% royalties on all room revenue to Hyatt.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
An ultra-high-investment, single-unit, unproven hotel franchise with no financial disclosure, questionable franchisor stability, and impossible ROI validation represents extreme execution and financial risk.
Score breakdown · what drove the 75 / 100 rating
- 01MEDMassive capital requirement ($25M-$31.5M) with no disclosed average revenue or net income data to justify ROI
- 02MINOROnly 1 existing unit indicates either brand-new concept or severe contraction; impossible to validate unit economics or growth trajectory
- 03HIGHGoing Concern = False suggests franchisor financial instability or startup status, creating existential risk to franchisee support
- 04MINORNo Item 19 financial performance representations eliminates ability to model realistic returns despite $25M+ investment
- 05MINOR20-year term locks franchisee into relationship with unproven, single-unit system with no exit clarity
- 06MINOR5% royalty on 'Gross Rooms Revenue' (not net) compounds burden on already-thin hotel operating margins
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Caption by Hyatt · FDD (2026) PDF