Does the Caption By Hyatt Franchise Agreement address IT Project Management Services?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT E to the BRAND HOTEL FRANCHISE AGREEMENT
IT PROJECT MANAGEMENT SERVICES
[SELECT SERVICE]
HYATT IT PROJECT MANAGEMENT SERVICES AND IMPLEMENTATION AND TRAINING FOR HYATT PROPRIETARY SYSTEMS
1. Scope of Services, Part 1
IT Project Management Services - The overall process includes a Blueprint Review and IT Project Management & Planning. Listed below are the activities for each component which are included in the IT Project Management Services fee.
- (b) Franchisee Responsibilities.
Franchisee agrees to perform, in a timely manner, the tasks identified as Franchisee's responsibilities in Exhibit E.
Franchisee acknowledges that Hyatt's performance of the IT Project Management Services is dependent on Franchisee's timely, accurate, and effective performance of all Franchisee's responsibilities set forth in Exhibit E, including providing written notice to Hyatt of Franchisee's designated representative.
Franchisee further acknowledges and agrees that its failure to perform may prevent or delay Hyatt's performance of the IT Project Management Services and/or require modifications to the services performed, including an adjustment to the scope of work, completion schedule or fees.
- (c) Site Preparation.
Franchisee will be responsible for all site preparation at the Hotel in connection with the IT Project Management Services.
Without limitation, Franchisee is responsible for all climate control, physical safety and security, provision of adequate electric and telecommunications utilities, and wiring for all equipment and devices.
Franchisee will also provide such workspace, supplies, hardware and software as are reasonably required for each assignment.
- (d) Hyatt Limited Warranty.
Hyatt warrants that the IT Project Management Services will be performed in substantial accordance with the specifications set forth in Exhibit E.
If any IT Project Management Services do not comply with this warranty, Franchisee must notify Hyatt in writing within thirty (30) days after completion of the IT Project Management Services.
As to any valid warranty claim, Hyatt will at its option: (i) repair the defect; (ii) re-perform the defective IT Project Management Services; or (iii) refund sums paid by Franchisee to Hyatt for the defective IT Project Management Services.
Following expiration of the warranty period, Franchisee accepts the IT Project Management Services in their "AS-IS" condition.
The foregoing constitutes Franchisee's sole and exclusive remedies in response to a warranty claim.
Hyatt also may, at its option, provide IT project management implementation services and other services relating to the computing equipment and other technology at the Hotel during the Term.
Franchisee must pay Hyatt's reasonable fees and reimburse Hyatt's expenses in connection with such assistance.
- (b) Franchisee shall pay Hyatt the "IT Project Management Services Fee" set forth in Exhibit B-1, plus any applicable taxes thereon.
The IT Project Management Services Fee is non-refundable.
Franchisee shall reimburse Hyatt's or its Affiliate's reasonable expenses in connection with rendering the IT Project Management Services, including any necessary transportation, lodging and meals, plus applicable taxes thereon.
The IT Project Management Services Fee (including expenses) will be invoiced by Hyatt no earlier than: (i) Hyatt's completion of the IT Project Management Services or (ii) upon Franchisee's termination of the Hotel development project or the IT Project Management Services, for any reason, in either event regardless of whether Hyatt has approved the Hotel for opening.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
Yes, the Caption By Hyatt 2025 Franchise Disclosure Document (FDD) addresses IT Project Management Services in several sections. Exhibit E to the Brand Hotel Franchise Agreement specifically covers IT Project Management Services, implementation, and training for Hyatt proprietary systems. This exhibit outlines the scope of services, including blueprint review, IT project management, and planning.
The FDD also details the franchisee's responsibilities related to IT Project Management Services. The franchisee must perform tasks outlined in Exhibit E in a timely manner and acknowledges that Hyatt's performance depends on the franchisee's adherence to these responsibilities. Failure to meet these responsibilities may delay or require modifications to the services, potentially affecting the scope of work, schedule, or fees.
Furthermore, the franchisee is responsible for site preparation, including climate control, physical safety, security, and providing necessary utilities and wiring. Hyatt provides a limited warranty for the IT Project Management Services, stating that services will be performed in accordance with Exhibit E. If services do not comply with the warranty, the franchisee must notify Hyatt in writing within 30 days of completion, and Hyatt will either repair the defect, re-perform the services, or refund the sums paid for the defective services. The franchisee is also responsible for procuring third-party components and maintaining data back-up and disaster recovery plans.
Hyatt may also provide IT project management implementation services and other services related to computing equipment and technology at the hotel, for which the franchisee must pay reasonable fees and reimburse expenses. Hyatt retains the right to modify the scope of IT Project Management Services, and any changes resulting in increased costs may lead to additional fees charged to the franchisee. The IT Project Management Services Fee, as detailed in Exhibit B-1, is non-refundable, and Hyatt will invoice this fee upon completion of the services or termination of the project.