What is the dependency between the transfer of the Hotel's ownership and the Caption By Hyatt franchise agreement?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, a transfer of the hotel's ownership can only occur with a transfer of the franchise agreement. Specifically, the FDD states that a transfer of the Hotel's ownership, possession, or control, or substantially all of its assets, may be made only with a transfer of this Agreement. Any transfer without complying with the terms and conditions applicable to such transfer, including Caption By Hyatt's approval, is a breach of the agreement.

This means that if a Caption By Hyatt franchisee decides to sell the hotel property, the franchise agreement must also be transferred to the new owner. This ensures that the hotel continues to operate under the Caption By Hyatt brand standards and that the franchisor maintains control over the brand's image and reputation. The prospective franchisee should note that any attempt to transfer the hotel's ownership without transferring the franchise agreement would be considered a breach of contract, potentially leading to legal and financial repercussions.

This requirement protects Caption By Hyatt by ensuring consistent brand standards and quality across all franchised locations, as it allows them to vet and approve potential new franchisees. For a franchisee, this could mean a more complex sale process, as they need to find a buyer who is also approved by Caption By Hyatt and willing to take on the obligations of the franchise agreement. However, it also provides a level of assurance that the brand will remain consistent, which can benefit all franchisees in the long run.