16 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Destination by Hyatt franchise ranges from $45.8M to $253.8M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Destination by Hyatt is $100K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Destination by Hyatt 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Yes, a Destination by Hyatt franchise requires a physical location (2025 FDD). Franchisees will need to lease or purchase commercial real estate, which is a significant component of the total investment.
View full investment analysisDestination by Hyatt charges a royalty fee of 7.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Destination by Hyatt franchise is approximately 10.5% of gross sales (2025 FDD). This includes the royalty fee, a 3.5% marketing/advertising fund contribution, and other recurring charges.
View full fees analysisDestination by Hyatt has been involved in 1 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.
View full litigation analysisNo, the Destination by Hyatt franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisDestination by Hyatt offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisDestination by Hyatt currently operates 14 locations (2025 FDD) (4 franchised, 10 company-owned). The system grew by 0.0% over the past year. The 3-year compound annual growth rate is -4.3%.
View full growth analysisThe 1-year franchisee turnover rate for Destination by Hyatt is 0.0% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisDestination by Hyatt does not include an Item 19 financial performance representation in their FDD (2025 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.
View full financials analysisThe initial franchise agreement term for Destination by Hyatt is 20 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 30 years.
View full contract analysisDestination by Hyatt's post-termination non-compete clause restricts former franchisees from operating a competing business for 0 years within 0 miles of the former location (2025 FDD).
View full legal analysisYes, Destination by Hyatt's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD).
View full legal analysisDestination by Hyatt provides 339 hours of initial training (2025 FDD). Ongoing field support is provided on a annual basis.
View full support analysisDestination by Hyatt does not provide site selection assistance (2025 FDD). Franchisees are responsible for finding and securing their own location. The franchisor also provides technology support and systems.
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