What is the definition of a 'Non-Control Transfer' in the Caption By Hyatt franchise agreement?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, a 'Non-Control Transfer' is defined as any transfer of (a) a non-Controlling Ownership Interest in the Franchisee, (b) a non-Controlling Ownership Interest in any Controlling Owner (if such Owner is a legal entity), or (c) a Controlling Ownership Interest or non-Controlling Ownership Interest in any Non-Controlling Owner (if such Owner is a legal entity). This definition is important for franchisees to understand because it dictates the level of control an owner has in the franchise and the requirements for transferring ownership interests.

In essence, a Non-Control Transfer involves the transfer of ownership interests that do not result in a change of control of the Caption By Hyatt franchise. This means that the original controlling owner(s) still maintain the majority of the ownership and decision-making power. The distinction between control and non-control transfers is crucial because it affects the level of scrutiny and approval required from Caption By Hyatt.

For a prospective Caption By Hyatt franchisee, understanding the nuances of control versus non-control transfers is essential for future business planning. Non-Control Transfers generally have fewer restrictions and may not require the franchisor's consent, provided certain conditions are met, such as ensuring the transferee is not a Competing Brand Owner or Sanctioned Person. Franchisees should be aware of the specific conditions and notification requirements associated with Non-Control Transfers to remain in compliance with the franchise agreement.