What documents must a management company sign as a condition of Caption By Hyatt's approval?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
company, as a condition of that approval, the management company must sign the documents we require to protect our intellectual property rights and reflect its agreement to perform its management responsibilities and operate the Hotel in compliance with the Franchise Agreement. Our current form of Management Company Rider is attached as Exhibit F to the Franchise Agreement.
We may refuse to approve a management company that is a Competing Brand Owner. "Competing Brand Owner" means any entity that (a) is either a franchisor or owner of a Competing Brand (defined below), (b) manages or otherwise operates hotels exclusively for the franchisor or owner of a Competing Brand, or (c) is an affiliate of any entity described in (a) or (b) above. A "Competing Brand" is a hotel concept that has at least 5 hotels operating under that concept's trade name anywhere in the world and that, in our reasonable opinion, competes with Brand Hotels. If the management company or you (if we approve you to manage the Hotel) at any time becomes a Competing Brand Owner, fails to meet our minimum qualifications (as we may periodically modify them) or fails to comply with the Franchise Agreement (including any System Standards and/or if the Hotel remains in any remedial or non-compliant status under our then current Quality Assurance and Compliance Program for 3 or more consecutive months), the Management Company Rider, or any conditions of operator approval that we previously imposed, then we may: (a) revoke our approval of that management company or you as the Hotel's manager; or (b) as a condition of our continued approval, we may impose on that management company or you additional requirements, including participation in remedial training and other operational programs, at the Management Company's or your expense. If we revoke our approval of the Management Company or you as the manager, then you must promptly terminate the Management Arrangement (if applicable) and either assume direct control of the Hotel's management and operation, if we approve you to manage the Hotel, or engage another management company we approve.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 71–74)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, if a franchisee chooses to have a management company operate the hotel, that management company must be approved by Caption By Hyatt. As a condition of approval, the management company must sign documents that Caption By Hyatt requires to protect its intellectual property rights. These documents also ensure the management company agrees to perform its responsibilities and operate the hotel in compliance with the Franchise Agreement. The current form of the Management Company Rider is attached as Exhibit F to the Franchise Agreement.
Caption By Hyatt may refuse to approve a management company that is a Competing Brand Owner, which is defined as an entity that is either a franchisor or owner of a Competing Brand, manages hotels exclusively for a Competing Brand, or is an affiliate of such an entity. A Competing Brand is a hotel concept with at least five hotels operating under its trade name that Caption By Hyatt considers competitive.
If the management company becomes a Competing Brand Owner, fails to meet Caption By Hyatt's minimum qualifications, or fails to comply with the Franchise Agreement, Caption By Hyatt may revoke its approval of the management company. As a condition of continued approval, Caption By Hyatt may impose additional requirements on the management company, such as remedial training and other operational programs, at the management company's expense. If Caption By Hyatt revokes approval, the franchisee must terminate the management arrangement and either assume direct control of the hotel's management (if approved by Caption By Hyatt) or engage another management company that Caption By Hyatt approves.