Does the definition of 'Brand Damages' for Caption By Hyatt include confusion of national accounts?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
"Brand Damages" means lost Royalty Fees, lost System Services Charges, lost market penetration and goodwill, loss of Hotel System representation in the Hotel's market area, confusion of national accounts and individual customers, disadvantage in competing for national accounts and other types of bookings for Brand Hotels, lost opportunity costs, and expenses that Hyatt will incur in developing or finding another franchisee to develop another Brand Hotel in the Hotel's market area.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Brand Damages do include confusion of national accounts. Brand Damages are defined as encompassing various potential losses and detriments to the Caption By Hyatt brand resulting from a franchisee's actions or a premature termination of the franchise agreement.
Specifically, the definition includes lost Royalty Fees, lost System Services Charges, lost market penetration and goodwill, and loss of Hotel System representation in the Hotel's market area. It also explicitly mentions 'confusion of national accounts and individual customers' as well as 'disadvantage in competing for national accounts and other types of bookings for Brand Hotels'.
This definition makes it clear that Caption By Hyatt considers the potential disruption and damage to its relationships with national accounts and individual customers as a significant component of Brand Damages. This is particularly relevant for prospective franchisees as it highlights the importance of adhering to brand standards and fulfilling the terms of the franchise agreement to avoid actions that could lead to such confusion or disadvantage.