What is the 'AOP Term' as it relates to the Caption By Hyatt franchise agreement?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the 'AOP Term' is defined in Exhibit B-2 of the franchise agreement. The FDD excerpts also mention that during the AOP Term, with one exception, neither Hyatt nor its affiliates will open or authorize other parties to open other Brand Hotels within the Area of Protection. This provides a limited period of exclusivity for the franchisee.

The exception to this restriction is if Hyatt or an affiliate acquires a group of at least four hotels, one or more of which are located in the Area of Protection. In that case, Hyatt has the right to convert the acquired hotel(s) within the Area of Protection to operate under the Proprietary Marks, even if other acquired hotels are not converted.

After the AOP Term, the franchisee has no territorial rights or protection, and Hyatt and its affiliates can open or authorize others to open Brand Hotels within the Area of Protection. Therefore, the AOP Term represents a defined period during which the Caption By Hyatt franchisee benefits from a degree of territorial protection, subject to specific conditions and exceptions.