Does the definition of 'Brand Damages' for Caption By Hyatt include loss of goodwill?
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, the definition of "Brand Damages" does include lost goodwill. Specifically, Brand Damages are defined as encompassing several potential losses that Caption By Hyatt could incur due to a franchisee's actions or early termination of the franchise agreement.
The definition explicitly lists "lost market penetration and goodwill" as one component of Brand Damages. This means that if a franchisee's actions negatively impact the Caption By Hyatt brand's reputation or market presence, or if the franchise agreement is terminated prematurely, the franchisee may be liable for damages related to the loss of goodwill.
In addition to lost goodwill, the definition of Brand Damages also includes other financial repercussions such as lost Royalty Fees, lost System Services Charges, 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. This comprehensive definition suggests that Caption By Hyatt aims to capture all potential financial detriments resulting from damage to its brand or a premature termination of the franchise agreement.