Where can I find the meaning of 'AOP Term' in the Caption By Hyatt franchise agreement?

According to the 2025 Caption By Hyatt Franchise Disclosure Document, the definition of "AOP Term" can be located in Exhibit B-2 of the Brand Hotel Franchise Agreement. Understanding this term is crucial for franchisees as it relates to their rights within their Area of Protection.

The Area of Protection (AOP) and the AOP Term dictate the level of territorial exclusivity a franchisee receives. During the AOP Term, Caption By Hyatt generally agrees not to open or authorize other branded hotels within the franchisee's Area of Protection. This protection helps the franchisee establish their business without direct competition from the same brand.

However, this protection is subject to certain exceptions. For instance, if Caption By Hyatt acquires a group of at least four hotels, they retain the right to convert one or more of those hotels within the Area of Protection to a Caption By Hyatt branded hotel, even if other acquired hotels are not converted. This clause introduces a potential risk to the franchisee's exclusivity, as unforeseen acquisitions by Caption By Hyatt could lead to new branded hotels within their protected area.

After the AOP Term concludes, the franchisee loses all territorial protection, allowing Caption By Hyatt and its affiliates to operate or authorize other parties to operate hotels within the former Area of Protection. Therefore, knowing the exact meaning and duration of the AOP term is essential for assessing the long-term competitive landscape and potential return on investment for a Caption By Hyatt franchise.