Hyatt House

The technology fee of $6.65 is significantly lower than the typical range for hospitality franchises. Can the franchisor detail what services and systems are covered under this technology fee, and are there any anticipated increases planned?

The ad fund rate of 4.0% is above the typical range for this category. How is this ad fund allocated, what specific marketing initiatives does it support, and has the franchisor provided return-on-investment data for franchisees?

The transfer fee is $0, which is unusual for this franchise category. Are there any conditions or circumstances under which a transfer fee would be charged, and what is the approval process for unit transfers?

Renewal conditions number 8, which exceeds the typical range. Can the franchisor provide a detailed list of all 8 renewal conditions and explain what 'substantial compliance' and 'meeting current standards' specifically require?

The termination rate of 1.7% exceeds the typical range. Of the terminations recorded, what were the primary reasons cited by the franchisor, and can the franchisor provide examples of common defaults that result in termination?

The transfer rate of 5.9% is at the upper end of the typical range. What percentage of these transfers were approved versus denied, and what are the most common reasons franchisees request transfers?

The single litigation case filed by the franchisor—what was the nature of this case, what was the outcome, and is this litigation typical or indicative of broader franchisor-franchisee disputes?

What specific renewal fee must be paid at the 20-year mark to exercise the 10-year renewal option, and are there capital improvement requirements associated with renewal?

The Investment Costs score is 0/100. Can the franchisor provide a detailed breakdown of all initial investment costs including land, construction, equipment, and working capital for a typical unit?

Support & Training scores exceptionally high at 90/100. What specific training programs, ongoing support, and resources does the franchisor provide post-opening, and are there measurable performance metrics associated with franchisee success?

The franchise agreement requires personal guarantees from one or more direct or indirect owners. In what circumstances would the franchisor enforce these guarantees, and are there limitations on what obligations the guarantees cover?

Can the franchisor provide the actual Item 19 financial performance data showing average unit volumes, profit margins, and payback periods for existing Hyatt House locations?

The cure period for shutdown situations is 24 hours. What specific circumstances qualify as a 'shutdown situation,' and what happens to franchisees who cannot cure within this timeframe?

The non-compete is 0 years / 0 miles. Does this mean a franchisee can immediately open a competing hotel brand after exiting, and are there any non-solicitation or confidentiality restrictions that extend post-termination?

In 2023, both terminations and closures increased to 3 each compared to zero in 2022. Can the franchisor explain what changed in the system during 2023 and whether these increases have stabilized?

The transfer rate of 5.9% represents 17 transfers over 3 years. Are transfers typically to new franchisees, existing franchisee multi-unit operators, or third parties, and what is the franchisor's stance on each scenario?

Encroachment protection is noted as 'True' but territory is not exclusive. How does the franchisor define and enforce encroachment protection, and what recourse do franchisees have if a new unit opens near their territory?

What are the specific standards and metrics that constitute 'current standards' that franchisees must meet for renewal approval, and how frequently are these standards updated?

How many franchisees have successfully renewed beyond their initial 20-year term, and what percentage of renewal applications were denied in the past 5 years?