For Caption By Hyatt, does the definition of 'Affiliate' include entities indirectly controlled by a party?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the definition of "Affiliate" does include entities indirectly controlled by a party. Specifically, the FDD states that an affiliate is any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party.

For a prospective Caption By Hyatt franchisee, this definition is important because it clarifies the scope of entities that are considered related to the franchisee or the franchisor. This can have implications for various aspects of the franchise agreement, such as transfer restrictions, competitive restrictions, and liability.

The definition specifies that control means the power to direct or cause the direction of management and policies. This broad definition of control ensures that the affiliate definition captures entities where influence is exerted, even without direct ownership. Franchisees should be aware of this broad definition and how it might affect their obligations and rights under the franchise agreement. Understanding the scope of "Affiliate" is crucial for compliance and strategic decision-making within the Caption By Hyatt franchise system.