Destination by Hyatt

The franchise fee of $100,000 exceeds the typical range for this category by $25,000-$65,000. What specific services, training, or support justify this premium fee compared to competitors?

Royalty rate of 7.0% is above the typical 5.0-5.5% range. How does this rate compare to other Hyatt franchise concepts, and are there any adjustments or reductions based on performance or tenure?

Why is the transfer fee set at $0 when the typical range for this category is $12,500-$50,000? Does this create any concerns about franchise stability or franchisee commitment?

The system contracted by 2 units in 2022 (described as 'ceased other'). What specifically caused these 2 closures, and were they voluntary or franchisor-initiated?

The 3-year CAGR of -4.35% indicates system contraction. What is the franchisor's growth strategy, and are there specific expansion plans for the Destination by Hyatt brand?

One litigation case was initiated by the franchisor in the 3-year period. What was the nature of this case, the outcome, and has it been resolved?

The franchise agreement includes 10 non-curable default events with cure periods as short as 24 hours. Can you provide specific examples of these defaults and clarify how quickly termination could occur?

All disputes must be resolved through mandatory binding arbitration in Chicago, Illinois. What are the typical costs and timelines for arbitration under this clause, and are there alternative dispute resolution options available?

Personal guarantees are required from controlling interest owners. Are there any exceptions for multi-unit operators or institutional investors, and what specific obligations do guarantors assume?

The renewal conditions require 'substantial compliance' during the initial 20-year term. How is 'substantial compliance' defined and measured, and what percentage of franchisees typically qualify for renewal?

The agreement includes 10 supplier restrictions requiring compliance with system standards. Are there approved suppliers, or must franchisees work exclusively with franchisor-designated vendors, and how are costs impacted?

Territory is protected but not exclusive. What specific protections exist against franchisor encroachment, and has the franchisor ever added competitive concepts in existing franchise territories?

The renewal fee of $10,000 applies after the initial 20-year term. Are there any additional investments or upgrades required as a condition of renewal beyond the fee?

With no non-compete clause (0 years / 0 miles), what prevents franchisees from competing directly with the brand after termination or non-renewal? Are there any confidentiality or trade secret protections?

What financial metrics or Item 19 performance data would be available during the franchisee discovery process, and what is the range of unit profitability in the current system?

How many of the current 14 units are performing above or below system averages, and what support does the franchisor provide to underperforming properties?

The system has been relatively flat for the past 2 years at 14 units. Are there pending franchise sales, territories in development, or conversion opportunities that would affect future unit count?

Has the franchisor made any recent changes to the franchise agreement, fee structure, or renewal terms that differ from what current franchisees operate under?

What specific services, technology, and marketing support are included in the ongoing fees, and are there separate charges for brand-wide initiatives or system upgrades?

Given the operational control clause allowing designation of suppliers and service providers, how much flexibility do franchisees have in managing hotel operations independently?