Who is in charge of the administration and determines contributions for a Caption By Hyatt Cooperative?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
marketing policies. However, we may form, change, and dissolve these councils.
We may identify a region in which 2 or more Brand Hotels are located (including, if applicable, those that we or our affiliates own or operate) to establish a local or regional advertising cooperative (a "Cooperative"). We may form, change, dissolve and merge Cooperatives. The Cooperative's purpose will be to collect funds from its members and to plan, discuss, organize, develop, utilize, produce, disseminate, and implement marketing, advertising and promotional programs and materials on a collective basis (and to cover related expenses) for participating Brand Hotels. We will not require you to participate in a Cooperative. However, if you choose to participate in the Cooperative, you must do so according to the Cooperative's rules, including by paying your Hotel's allocable share for any advertising, marketing, promotional and other
programs that the Cooperative conducts. The Cooperative will be in charge of its own administration and determines contributions. Cooperative members will typically contribute to programs at the same rate. We anticipate that Cooperatives will operate from written governing documents and prepare financial statements that member franchisees may review. All restrictions relating to any advertising, marketing or promotional materials and programs that you use or conduct also apply to any materials and programs that the Cooperative will use or conduct. (Section 5.5 of Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, if a local or regional advertising cooperative is established, the Cooperative itself will be in charge of its own administration and will determine the contributions of its members. Caption By Hyatt may identify a region in which two or more Brand Hotels are located to establish a Cooperative.
The FDD specifies that cooperative members will typically contribute to programs at the same rate. These cooperatives are designed to allow participating Brand Hotels to collectively plan, organize, and implement marketing, advertising, and promotional programs.
While Caption By Hyatt will not require franchisees to participate in a Cooperative, those who choose to participate must adhere to the Cooperative's rules, including paying their share of advertising and promotional expenses. The Cooperative will operate from written governing documents and prepare financial statements that member franchisees may review.