When does the AOP Term typically end for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
We also will assign an "AOP Term" and list the AOP Term in the Franchise Agreement before we and you sign it. The AOP Term is the time period during which your rights in the Area of Protection will apply. The AOP Term begins on the effective date of the Franchise Agreement and typically ends 3 years after the Hotel's opening date.
Source: Item 12 — Territory (FDD pages 65–67)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Area of Protection (AOP) Term defines the period during which a franchisee's rights to an area apply. The AOP Term for a Caption By Hyatt franchise typically concludes 3 years after the hotel's opening date. This term commences on the effective date of the Franchise Agreement.
Prospective franchisees should note that the AOP Term is not indefinite. After it expires, Caption By Hyatt and its affiliates can operate or authorize others to operate competing Brand Hotels within the Area of Protection. This includes hotels operating under franchise agreements signed during the AOP Term.
It's important to recognize that the size of the Area of Protection can vary, ranging from a few blocks in urban settings to a radius of up to approximately 3 miles from the hotel's entrance in some suburban locations. The specific size and duration of the AOP Term will be detailed in the Franchise Agreement before it is signed. Franchisees should carefully consider these factors, as they directly impact the level of territorial protection afforded to their Caption By Hyatt business.