What is the deadline for a Caption By Hyatt franchisee to complete all de-identification obligations and provide written certification to Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
completed to Hyatt's satisfaction.
Beginning on the date upon which this Agreement terminates or expires and continuing until de-identification is completed to Hyatt's satisfaction, Franchisee must maintain a conspicuous sign at the registration desk in a form that Hyatt specifies stating that the Hotel no longer is associated with the Brand Hotel network. Franchisee and its Affiliates may not, without Hyatt's permission, represent to Hotel customers, prospective customers or the public that the Hotel is or was a Brand Hotel, or otherwise hold itself out to the public as a former franchisee of Hyatt's or as the former operator of a Brand Hotel, except in the limited case of informing investors, prospective investors, or
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, a franchisee must complete all de-identification obligations to Hyatt's satisfaction and provide written certification of completion within fifteen (15) days after the franchise agreement terminates or expires. De-identification involves removing any branding or identifying marks that associate the hotel with the Caption By Hyatt brand.
If a Caption By Hyatt franchisee fails to meet this deadline, they will incur a penalty. The franchisee must pay Hyatt a royalty fee of $5,000 per day until the de-identification is completed to Hyatt's satisfaction. Additionally, the franchisee must allow Hyatt's representatives to enter the hotel and complete the de-identification process at the franchisee's expense.
This provision highlights the importance of timely compliance with de-identification requirements upon termination or expiration of the franchise agreement. The daily penalty of $5,000 can quickly become a significant financial burden, and the added expense of Hyatt completing the de-identification process underscores the need for franchisees to adhere to the specified timeframe. Prospective franchisees should carefully review the de-identification obligations outlined in the franchise agreement and plan accordingly to avoid these potential penalties.