Does the Caption By Hyatt confidentiality agreement cover Hyatt Trade Secrets?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise set forth herein, the obligations set forth in this Agreement shall terminate upon the execution of definitive agreements between the parties with respect to the Transaction or two (2) years from the date of this Agreement, whichever occurs first; provided, however, that notwithstanding the termination of this Agreement, the confidentiality obligations of the Company with respect to a Hyatt Trade Secret shall continue until the later of (i) five (5) years from the date of this Agreement, and (ii) until such time that Hyatt has provided notice that the Hyatt Trade Secret is no longer deemed by Hyatt to be a trade secret.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the confidentiality agreement does address Hyatt Trade Secrets. The agreement stipulates that even after the termination of the agreement, the confidentiality obligations concerning a Hyatt Trade Secret remain in effect. These obligations continue for a minimum of five years from the agreement date, or until Hyatt formally declares that the information is no longer considered a trade secret, whichever is later.
This extended protection for trade secrets is a significant aspect of the agreement. It ensures that sensitive information remains protected for an extended period, preventing potential misuse or disclosure that could harm Hyatt's competitive advantage. For a prospective Caption By Hyatt franchisee, this means understanding that certain information received during the term of the agreement must be safeguarded indefinitely, even after the franchise relationship ends.
The franchisee must be aware of the specific information designated as a Hyatt Trade Secret and take appropriate measures to protect it. This may involve implementing security protocols, limiting access to the information, and ensuring that employees are also bound by confidentiality obligations. The franchisee should seek clarification from Hyatt regarding what constitutes a 'Hyatt Trade Secret' to ensure full compliance with the confidentiality terms. This long-term obligation highlights the importance of carefully managing and protecting confidential information throughout the franchise relationship.