Does the Caption By Hyatt Franchise Agreement address Hyatt's Role in Pre-Opening Phase?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt agrees to use commercially reasonable efforts in connection with its review and approval of plans and its approval to open the Hotel in affiliation with the Proprietary Marks, including by making a reasonable number of visits to the Site and providing reasonable guidance and advice relating to the Hotel's development or conversion.
Franchisee must pay Hyatt's then current fees (if any) for any additional guidance, services or assistance (beyond what Hyatt typically provides to similarly situated Brand Hotels,
subject to Reasonable Deviations) that Franchisee requests, and that Hyatt (at its option) agrees to provide, in connection with the Hotel's development or conversion. Hyatt's review and approval of plans, its providing construction, design, architectural, planning and/or related services in connection with the Hotel (whether before or after signing this Agreement), and its approval to open the Hotel in affiliation with the Proprietary Marks are intended only to determine compliance with Hyatt's pre-opening requirements. Hyatt's determination that Franchisee has met all of Hyatt's pre-opening requirements will not constitute a representation or warranty, express or implied, that the Hotel complies with any laws or is safe for occupancy, nor shall such determination act as a waiver of Franchisee's non-compliance, or of Hyatt's right to demand full compliance, with such pre-opening requirements or any other provision of this Agreement. Hyatt will have no liability to Franchisee for the Hotel's construction or renovation. It is Franchisee's responsibility to ensure that the Hotel (a) complies with Hyatt's requirements as communicated to Franchisee by Hyatt, (b) complies with all Accessibility Laws and other applicable ordinances, building codes, and permit requirements, and (c) is safe for occupancy.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, the agreement does address Hyatt's role in the pre-opening phase. Hyatt agrees to use commercially reasonable efforts in connection with its review and approval of plans and its approval to open the Hotel in affiliation with the Proprietary Marks. This includes making a reasonable number of visits to the Site and providing reasonable guidance and advice relating to the Hotel's development or conversion.
However, the Caption By Hyatt franchisee is responsible for paying Hyatt's then-current fees for any additional guidance, services, or assistance beyond what Hyatt typically provides to similarly situated Brand Hotels. Hyatt's review and approval of plans, providing construction, design, architectural, planning, and related services, and its approval to open the Hotel are intended only to determine compliance with Hyatt's pre-opening requirements.
It's important to note that Hyatt's determination that a Caption By Hyatt franchisee has met all pre-opening requirements does not constitute a representation or warranty that the Hotel complies with any laws or is safe for occupancy. Hyatt will have no liability to the franchisee for the Hotel's construction or renovation. The franchisee is responsible for ensuring the Hotel complies with Hyatt's requirements, all Accessibility Laws and other applicable ordinances, building codes, and permit requirements, and is safe for occupancy.