Does the Caption By Hyatt Franchise Agreement address F&B Operations and Spa Operations?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
downtime.
- (h) Changes in Scope, Fees. Hyatt and Franchisee acknowledge and agree that the scope of the IT Project Management Services may change between the Effective Date and the date that the IT Project Management Services are provided, as a result of modifications to the technology systems required under the Hotel System. If any such changes result in an increase to Hyatt's costs in providing the IT Project Management Services, Hyatt shall have the right to charge a reasonable additional fee in connection therewith.
2.3 F&B Operations and Spa Operations.
(a) F&B Operations Plan. At Hyatt's option, Franchisee must prepare and deliver to Hyatt for its approval the F&B Operations Plan describing Franchisee's proposal for conducting F&B Operations at the Hotel. Franchisee shall make such modifications to the F&B Operations Plan that Hyatt reasonably specifies and ensure that the Hotel and its
F&B Operations operate in accordance with the approved F&B Operations Plan. Franchisee may not make any material changes to the F&B Operations Plan (including any changes to the proposed restaurant concept(s) and/or F&B Operator(s)) without Hyatt's prior written approval. Before the Hotel begins operating in affiliation with the Proprietary Marks, Franchisee shall require each F&B Operator (if any) to sign such documents as Hyatt reasonably specifies to protect Hyatt's (and its Affiliates') intellectual property and other rights. At Hyatt's option, Franchisee must submit to Hyatt for its prior approval any proposed lease or other agreement between Franchisee (or its Affiliate or the Management Company) and the F&B Operator pursuant to which the F&B Operator will conduct F&B Operations, in which case Franchisee may not sign (or permit its Affiliate or the Management Company to sign) any such lease or other agreement that Hyatt has not approved.
- (b) Spa Operations. If the Hotel has Spa Operations, Franchisee may subcontract the management of the Spa Operations to a Spa Operator only if (i) Hyatt (in its sole judgment) approves of the Spa Operator, the spa concept and the terms of the lease or other arrangement between Franchisee and the Spa Operator; (ii) the Spa Operator complies with all applicable System Standards; and (iii) the spa does not use the Proprietary Marks in any manner (unless Hyatt authorizes such use in writing).
- 2.4 Pre-Opening Sales Office. Promptly after the Technology System is installed at the Hotel, at Hyatt's option, Franchisee must open and begin operating a Pre-Opening Sales Office at the Site, staffed by the Hotel's director of sales.
- 2.5 Opening the Hotel. Franchisee may not open or begin operating the Hotel in affiliation with the Proprietary Marks until Hyatt has notified Franchisee in writing that Franchisee has satisfied all of the pre-opening conditions set forth in the System Standards or otherwise in writing. Franchisee must open and begin operating the Hotel under the Hotel System and in affiliation with the Proprietary Marks on or before the Opening Deadline. Franchisee may request an extension of the Opening Deadline by submitting to Hyatt, at least three (3) months before the Opening Deadline, a written request for extension and an extension fee in the amount set forth in Exhibit B-1.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Yes, the Caption By Hyatt Franchise Agreement, according to the 2025 Franchise Disclosure Document, extensively addresses both F&B (Food & Beverage) Operations and Spa Operations.
Specifically, the agreement stipulates that if a Caption By Hyatt hotel includes F&B operations, the franchisee must create an F&B Operations Plan for Hyatt's approval, and operate in accordance with the approved plan. Material changes to this plan, including restaurant concepts or operators, require Hyatt's written approval. Hyatt also has the option to approve any lease agreements between the franchisee and the F&B operator.
For hotels with Spa Operations, the franchisee can subcontract the management to a Spa Operator, but only with Hyatt's approval of the operator, the spa concept, and the lease terms. The Spa Operator must comply with all System Standards, and generally cannot use the Proprietary Marks unless authorized in writing by Hyatt. The franchisee is responsible for ensuring that both F&B and Spa Operations comply with all laws, rules, regulations, and System Standards, and for providing necessary training programs. Non-compliance can lead to Hyatt revoking approval of the operator, requiring the franchisee to terminate the arrangement and either assume direct control or engage another approved operator.