What is a condition of Hyatt's approval of any Management Company for a Caption By Hyatt Hotel?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Management Company Documents. As a condition of Hyatt's approval of any Management Company, the Management Company must (i) sign the documents Hyatt requires to protect its intellectual property rights and to reflect the Management Company's agreement to perform its management responsibilities and otherwise operate the Hotel in compliance with this Agreement (collectively, the "Management Company Documents"); and (ii) attend and successfully complete Hyatt's designated then current operator training programs for Brand Hotels, if any. The current version of the Management Company Documents is attached as Exhibit F. Hyatt may refuse to approve a Management Company that is a Competing Brand Owner. If Hyatt has approved a Management Company as of the Effective Date, or if Hyatt has approved Franchisee to manage the Hotel as of the Effective Date, then the approved Management Company (if applicable) is listed on Exhibit B-1.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a condition of Hyatt's approval of any Management Company is that the Management Company must sign the documents Hyatt requires to protect its intellectual property rights and to reflect the Management Company's agreement to perform its management responsibilities and otherwise operate the Hotel in compliance with the Franchise Agreement. These documents are collectively called the "Management Company Documents." The current version of these documents is attached as Exhibit F to the Franchise Agreement.
Additionally, the Management Company must attend and successfully complete Hyatt's designated then-current operator training programs for Brand Hotels, if any. Hyatt may refuse to approve a Management Company that is a Competing Brand Owner.
For a prospective Caption By Hyatt franchisee, this means that if they choose to use a management company to operate their hotel, that company will need to meet certain requirements set by Hyatt, including signing specific documents and completing training programs. This ensures that the management company understands its obligations to Hyatt and operates the hotel in a way that aligns with the brand's standards and protects Hyatt's intellectual property. Franchisees should carefully review Exhibit F to understand the full scope of the Management Company Documents and discuss any concerns with Hyatt during their due diligence process.