What is the definition of 'Flag Change' that would cause termination of the Caption By Hyatt agreement?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, a 'Flag Change' that would cause automatic termination of the agreement is defined as any termination of Hyatt's franchise relationship with the owner. It also includes any change that results in the property no longer being under a management, franchise, or similar agreement with a direct or indirect subsidiary of Hyatt Hotels Corporation.

For a prospective Caption By Hyatt franchisee, this means that if the franchise relationship with Hyatt ends, or if the hotel ceases to be managed or franchised by Hyatt or one of its subsidiaries, the agreement is automatically terminated. This clause protects Hyatt's brand and ensures that properties operating under the Caption By Hyatt name maintain their affiliation with the company.

This type of termination clause is relatively standard in franchise agreements within the hospitality industry. It ensures that the brand maintains control over its image and standards. Franchisees should be aware of this automatic termination condition, as it could have significant implications for the operation and ownership of the Caption By Hyatt property.