What is the exception to providing information about Owners to Hyatt for a Caption By Hyatt franchise?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Hyatt's rights or Franchisee's obligations under this ARTICLE XII, upon Hyatt's reasonable request, Franchisee agrees to provide Hyatt information about the identity of the Owners (other than a Public Owner) and their ownership interests (whether direct or indirect) in Franchisee from time to time using the forms and formats that Hyatt reasonably specifies.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, franchisees are generally required to provide information about the identity of their owners and their ownership interests to Hyatt upon request. However, there is an exception for 'Public Owners.'
Specifically, Caption By Hyatt franchisees do not have to provide information about owners who are considered 'Public Owners.' This means that if an owner's interest is through publicly traded shares, the franchisee is not obligated to disclose the identity of those owners or the details of their ownership.
This exception likely exists because tracking and reporting the ownership details of publicly traded shares would be impractical and burdensome for both the franchisee and Caption By Hyatt. The requirement to disclose ownership information primarily targets controlling owners who have a significant influence on the management and operation of the franchise.